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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

The AIG Bailout

A draft of my new paper entitled The AIG Bailout is now up on SSRN. Here’s the abstract: On February 28, 2008, American International Group, Inc. (AIG), the largest insurance company in the United States, announced 2007 earnings of $6.20 billion or $2.39 per share. Its stock closed that day at $50.15 per share. Less ... The AIG Bailout

Competitive Resale Price Maintenance in the Absence of Free-Riding

I want to second Josh’s commendation of Ben Klein’s submission to the recent FTC Hearings on Resale Price Maintenance. Klein’s paper, which bears the same title as this post, is lucidly written (blissfully free of equations, Greek letters, etc.) and makes a point that, at this juncture in antitrust’s history, is absolutely crucial. In the ... Competitive Resale Price Maintenance in the Absence of Free-Riding

Cert Denied in Rambus

Hot off the press (HT: Antitrust Review). As TOTM readers will know, I think this is the correct result as I’ve argued here that the Supreme Court should indeed reject the Commission’s petition. I also believe the rejection is consistent with the Supreme Court’s antitrust case selection under Chief Justice Roberts in the sense that, ... Cert Denied in Rambus

DOJ AAG Designate Christine Varney on Section 2, Europe, Google & A Puzzling Statement About Error Costs

Predicting what antitrust enforcement regimes in the current economic environment is a tricky business.  I’ve done my best here.  One probably cannot think of a better source for such predictions than those from the soon-to-be AAG Christine Varney, who recently spoke at an American Antitrust Institute panel on Section 2 enforcement (you can hear the ... DOJ AAG Designate Christine Varney on Section 2, Europe, Google & A Puzzling Statement About Error Costs

Law and New Institutional Economics for Law Professors

Victor Fleischer and Phil Weiser are putting on a Law and New Institutional Economics workshop for law professors in June.  The conference announcement is here. I believe Thom attended last year’s installment, and I will be on the program this year. Here are more details: New Institutional Economics (NIE) is an interdisciplinary methodology that draws ... Law and New Institutional Economics for Law Professors

Some Reactions to the Obama Housing Plan

First, Peter Klein: I am bewildered. But, more than that, I am angry. I can’t count how many news accounts I’ve seen about the poor, struggling homeowners who can’t make the monthly mortgage payment, are about to be foreclosed, and risk losing the family home, yard, white picket fence, and piece of the American Dream. ... Some Reactions to the Obama Housing Plan

TradeComet.com v. Google (UPDATED: With Complaint)

Anybody want to share a copy of the complaint?  (Email: jwrightg at gmu dot edu). UPDATE: Here’s a copy of the TradeComet Complaint. Thanks to an anonymous reader. Some brief comments on the highlights of the Complaint.  Per Thom’s comment below, it looks like the thrust of the complaint is not the price hike which ... TradeComet.com v. Google (UPDATED: With Complaint)

What's the Empirical Evidence on RPM?

I’ve been reading the papers for the FTC RPM Workshops, though I cannot attend.  On the procompetitive side, I especially recommend Ben Klein’s explanation of how RPM facilitates the supply of promotional services in the absence of dealer free-riding.  Critics of RPM, in my view, generally do not understand the fundamental economic point that retailer ... What's the Empirical Evidence on RPM?

Ribstein on Bebchuk on Paycaps

Here is Larry Ribstein commenting on Lucien Bebchuk’s recent WSJ op-ed criticizing the stimulus bill paycaps,  Harvard’s Lucian Bebchuk, perhaps the leading academic critic of executive pay, has found a regulation of executive pay he didn’t like – the stimulus bill. … Academics often do not seem to understand when they propose regulatory fixes that they do not ... Ribstein on Bebchuk on Paycaps

Froeb & Ganglmair on Antitrust and Patent Holdup

Luke Froeb and Bernard Ganglmair have posted An Equilibrium Analysis of Antitrust as the Solution to Patent Holdup.  Here’s the abstract: After downstream manufacturers make relationship-specific investments to develop products using upstream patented technology, they can be held-up” by patentees, sometimes called “patent ambush.” If manufacturers anticipate hold-up, they will be reluctant to make relationship-specific ... Froeb & Ganglmair on Antitrust and Patent Holdup