The Archives

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

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Fool me once, shame on…shame on you. Fool me – you can’t get fooled again.

I’d like to share a quote on banking industry regulation: “To restrain private people, it may be said, from receiving in payment the promissory notes of a banker for any sum, whether great or small, when they themselves are willing to receive them; or, to restrain a banker from issuing such notes, when all his ... Fool me once, shame on…shame on you. Fool me – you can’t get fooled again.

Clearing the Way for an Organ Market?

From the WSJ on potential legislation clearing the way for compensation to donors in the form of tax deductions: While the chilling effect of the federal ban has remained since 1994, the national transplant waiting list has more than quadrupled. This may be why organizations like the National Kidney Foundation, which has previously opposed all ... Clearing the Way for an Organ Market?

No Ovation for FTC's Latest Enforcement Theory

The Federal Trade Commission announced a puzzling complaint filed in a new consummated merger & monopolization case in the U.S. District Court for the District of Minnesota. Here’s the explanation of the case from the press release: The Federal Trade Commission today filed a complaint in federal district court challenging Ovation Pharmaceuticals, Inc.’s January 2006 ... No Ovation for FTC's Latest Enforcement Theory

Comings and Goings at the FTC Office of Policy and Planning

Congratulations to Maureen Ohlhausen, outgoing Director of the Office of Policy and Planning at the Federal Trade Commission, who is headed to a new position as Technology Policy Counsel at the Business Software Alliance, a nonprofit trade association that promotes innovation, growth, and a competitive marketplace for commercial software and related technologies.  While losing Maureen ... Comings and Goings at the FTC Office of Policy and Planning

Price Discrimination is Good, Part 3

At Knowledge Problem, Michael Giberson collects anecdotal evidence on New York’s zone pricing ban, i.e. a prohibition on price discrimination. While gasoline prices are falling all over the country, the anecdotal evidence is that New York’s zone pricing ban is resulting in higher profits for retailers at the expense of consumers. Former George Mason economist ... Price Discrimination is Good, Part 3

Zywicki on the Bankruptcy and the Bailout

My colleague Todd Zywicki is in the Wall Street Journal today on the merits of bankruptcy along with some public choice: General Motors looks like a financially failed rather than an economically failed enterprise — in need of reorganization not liquidation. It needs to shed labor contracts, retirement contracts, and modernize its distribution systems by ... Zywicki on the Bankruptcy and the Bailout

Hamermesh on the Point of the Bailout

Some simple economics and common sense: Governments intervene in markets all the time — and they should, in order to make markets more competitive; to solve problems of externalities (which are ubiquitous); to resolve difficulties caused by individuals’ shortsightedness, including the spurring of innovation; and to reduce transactions costs. Where does the auto bailout fit ... Hamermesh on the Point of the Bailout

Kolasky on What Happens with the Section 2 Report

William Kolasky (Wilmer Hale, and one of the frontrunners for the DOJ AG spot according to the rumormill) has an interesting piece in the Antitrust Source on the DOJ Section 2 Report arguing that while: even the objecting Commissioners would probably agree that the Justice Department Report does a good job analyzing particular types of ... Kolasky on What Happens with the Section 2 Report

Antitrust, The Bailout, and the Coming Boom in Monopolization Enforcement

From the WSJ comes an editorial from Martin Neal Baily and Matthew Slaughter describe a forthcoming report from the Private Equity Council making the link between product market competition and productivity: A central theme of this report is the critical role that competitive product markets play in spurring productivity growth and boosting standards of living. ... Antitrust, The Bailout, and the Coming Boom in Monopolization Enforcement

Law and Economics 2.0

Readers of TOTM know that the future of law and economics is a frequent topic of discussion here, and a topic in which I am both personally invested and spend a good deal of time thinking about (see, e.g. my blog series on the future of law and economics here).  Legal Pad (at CNN/Fortune Magazine) ... Law and Economics 2.0

The Devilish Details of Detroit’s Deal

There are some pretty scary devils in the details of this Detroit bailout legislation. This WSJ article provides some specifics. Under the terms of the draft legislation, “the government would receive warrants for stock equivalent to at least 20% of the loans any company receives.” Let’s put that in perspective. General Motors is seeking around ... The Devilish Details of Detroit’s Deal

Whole Foods Brings It

“Now for the evidence,” said the King. “And then the sentence.” “No!” said the Queen. “First the sentence, and then the evidence.” So goes a famous passage of Lewis Carroll’s Alice in Wonderland. And so begins Whole Foods’ new lawsuit against the Federal Trade Commission. In the lawsuit, filed yesterday in federal court in D.C., ... Whole Foods Brings It