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

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Franchising, Starbucks vs. Subway, and Promotional Services

Professor Bainbridge offers a correction to Keith’s Starbucks analysis by pointing out that Starbucks does not have franchisees. I don’t think the franchise/ franchisee distinction has much to do with Keith’s conclusion that whatever is going on is not an antitrust problem. But the Professor is on to a really cool question about franchising and ... Franchising, Starbucks vs. Subway, and Promotional Services

ET Radio Merger Countdown

The countdown is on for the XM-Sirius merger decision! (I wouldn’t be optimistic that the “end of the year” decision target will stand.)  Former FCC Chairman Reed Hundt and Representative Rich Boucher (D-Va) have recently come out in favor of the merger.  As everyone knows, it’s all about market definition, baby!  I’m not a gambling man, but I’d love ... ET Radio Merger Countdown

The Speculation Economy (penned by GW Professor Larry Mitchell)

George Washington University Law School Professor Larry Mitchell’s new book, The Speculation Economy, is a worthwhile read, and anyone with an interest in corporate law, securities regulation, stock market evolution, the rise of big business, legal history, antitrust, and other related topics should consider putting the book on his or her holiday wish-list. More specifically, The ... The Speculation Economy (penned by GW Professor Larry Mitchell)

Starbucks Store Traffic and Nonexclusivity

Traffic at Starbucks shops open for 13 months or more is down one percent. Does this mean that the public is finally losing its appetite for Starbucks? Not necessarily. While traffic is down, profits are up. Thus a more likely explanation for the new data is the firm’s price increase last summer rather than a ... Starbucks Store Traffic and Nonexclusivity

Scrapping the Notion of Fiduciary Duties Owed to Shareholders

U of Chicago Law Professors Douglas Baird and M. Todd Henderson (my very smart, very tall law school classmate) recently posted a provocative paper on SSRN. The paper, Other People’s Money, contends that “the oft-repeated maxim that directors of a corporation owe a fiduciary duty to the shareholders” is an “almost-right principle that has distorted ... Scrapping the Notion of Fiduciary Duties Owed to Shareholders

United/Delta

Yet another major airline merger appears to be in the works: United and Delta. This calls for some antitrust analysis. A few months ago, Thom did a thorough job analyzing the antitrust aspects of AirTran’s proposed takeover of Midwest. The key point in Thom’s analysis was that assessment of an airline merger’s economic effects properly ... United/Delta

The Roberts Courts Antitrust Philosophy: You Say Harvard, I Say Chicago …

The debate over the whether the current Supreme Court’s decisions are more accurately described as influenced by the Chicago School, the Harvard School, Post-Chicago thinking, or other influences has recently attracted a great deal of scholarship from premier antitrust scholars (e.g. FTC Commissioner William Kovacic’s article on the identifies a Chicago/Harvard double-helix structure in the ... The Roberts Courts Antitrust Philosophy: You Say Harvard, I Say Chicago …

The Truth About Reverse Mergers

For those interested in small company finance, I’ve recently posted on SSRN a draft of the short piece I’ve written for the Entrepreneurial Business Law Journal symposium issue. The piece is entitled “The Truth About Reverse Mergers” and can be downloaded here. Here’s the abstract: The Article examines the reverse merger method of going public. ... The Truth About Reverse Mergers

Bill Henderson Takes On the California Bar

Bill tells the story of his research team’s failed attempt to get data from the California Bar to test a possible mismatch effect in law schools.  Bill’s prepared remarks are here.  He sums up the case for disclosing the data aptly at the end of his post: But if we fail to diagnosis factors that ... Bill Henderson Takes On the California Bar

The Chicago School As A Virus?

Danny Sokol points to Spencer Webber Waller’s “The Chicago School Virus.”  Given the paper’s title, the fact that I’ve written previously on the irresponsible or misleading usages of the term Chicago School, and the author’s predilection to take shots at the Chicago School more generally (previous attempts include describing Hovenkamp’s recent movement toward Chicago School views as imposing the “thinking man’s ... The Chicago School As A Virus?

The Canseco Effect in the Legal Academy?

Eric Gould and Todd Kaplan have posted an interesting paper (highlighted at the WSJ Economics Blog) identifying the “Canseco Effect.”  They test baseball player Jose Canseco’s impact on his teammates productivity in response to Canseco’s assertion in his book that he made he improved his teammates’ performance by introducing them to steroids.  Turns out he ... The Canseco Effect in the Legal Academy?

MAE in the Sallie Mae Case

Back in April, private equity fund J.C. Flowers, along with JP Morgan Chase and Bank of America, agreed to acquire Sallie Mae, the largest provider of student loans in the United States. Between then and now, Congress passed the College Cost Reduction and Access Act of 2007 (CCRAA), which reduced in various ways the subsidies ... MAE in the Sallie Mae Case