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The collection of all scholarly commentary on law, economics, and more

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Whole Foods Throws in the Towel — Congrats to the FTC!

The witch hunt is over. Last evening, the FTC announced that it would drop its antitrust action against high-end grocer Whole Foods in exchange for the chain’s agreement to sell 32 stores and to give up the rights to Wild Oats’ name. FTC Chairman Jon Leibowitz proclaimed that “[a]s a result of this settlement, American ... Whole Foods Throws in the Towel — Congrats to the FTC!

"Editing Reality With Both Hands … "

The post title is stolen from a commenter (Unit) at this post over at Austrian Economists.  Delong’s comment editing practices (the selective editing even more so than the deleting of comments with opposing points of view) are disturbing to say the least.  Here’s an excerpt from the post: See this post of DeLong’s that is ... "Editing Reality With Both Hands … "

Verret on the Self-Defeating Bailout

My colleague JW Verret has an interesting take on the bank bailout at Forbes.com: This deal was intended to bolster public confidence in banks, while at the same time minimizing the cost of the bailout when Treasury sells its shares once markets pick up. The form of equity Treasury has taken, and plans to take ... Verret on the Self-Defeating Bailout

Varney on RPM

I just saw this very good piece in The Deal from Sean Gates and Tej Srimushnam (Morrison & Foerster) on what Christine Varney’s appointment to the Antitrust Division might mean for enforcement decisions. Gates and Srimushnam predict that some of the most important changes associated with the Varney DOJ are likely to be the “return” ... Varney on RPM

Hazlett on the Analog Switchoff

Here is my colleague Tom Hazlett in the Financial Times on the silent death of analog broadcasts for a significant fraction of TV stations: Some 420 TV stations pulled the plug last week, joining another 200 analog stations that had already signed off. What was supposed to cause outrage and panic among TV viewers proved ... Hazlett on the Analog Switchoff

"Equilibrium Decadence" in Law and Economics?

Here is Justin Wolfers discussing what Paul Krugman has called “equilibrium decadence” in the context of the current macro debate: The claim is that academic macroeconomists have become mired in a particularly fruitless equilibrium, in which each is engaged in the search for ever-greater levels of formal elegance, at the expense of empirical relevance. There’s ... "Equilibrium Decadence" in Law and Economics?

ALEA 2009 May 15-16 in San Diego

The program is available here. And I’m thrilled to report that my paper (with co-author Michael Baye), Is Antitrust Too Complicated for Generalist Judges: The Impact of Economic Complexity and Judicial Training on Appeals, has been selected for the conference.  I’m very much looking forward to the panel and the conference in general. [UPDATE: Congratulations ... ALEA 2009 May 15-16 in San Diego

Perspectives on Ticketmaster/Live Nation

Links to the Congressional testimony are available here (including from Luke Froeb), an informative article in the WSJ, and another at MSNBC quoting Boston University’s Keith Hylton on the possibility that the post-merger firm would force sellers to reduce fees and pass-on lower ticket prices to consumers.

Why the Supreme Court was Correct to Deny Cert in Rambus

As TOTM readers are likely to know, the Supreme Court denied certiorari in Rambus, a course of action I had argued was the appropriate response to the arguments set forth in the Commission petition.  I recently expanded the blog post into a short essay which I’ve posted on SSRN.  It will also be available in ... Why the Supreme Court was Correct to Deny Cert in Rambus

Hello Chairman Leibowitz; Goodbye Chairman Kovacic

Here’s the press release. Congratulations to Chairman-to-be Leibowitz. I also note that this marks the end of Chairman’s Kovacic’s reign at the Commission. On a personal note, I had the pleasure of working for the Chairman during my stint as the FTC Scholar in Residence and consider myself extremely fortunate to have had the opportunity. ... Hello Chairman Leibowitz; Goodbye Chairman Kovacic

FTC

Unquestionably Correct?

An anonymous reader reminds me of the FTC Statement from Commissioners Harbour, Leibowitz and Rosch (but not Chairman Kovacic, who was recused) making the case against certiorari in Linkline: “The holding of the Ninth Circuit is unquestionably correct, and indeed merely echoes what other courts of appeals have held on the narrow issue presented to ... Unquestionably Correct?

Linkline Decision is Unanimous

The opinion is available here.  Yet another super-majority Roberts Court antitrust decision applying consensus economic theory.  No more price squeeze claims.  Alcoa is not overturned.  The Court declares that the price-squeeze claim in the absence of a duty to deal can be handled jointly by a straightforward application of Trinko and Brooke Group to the ... Linkline Decision is Unanimous