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

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Peking University IEPR Antitrust Conference

Today marked the completion of the J. Mirrlees Institute of Economic Policy Research (IEPR) Conference on China’s Competition Policy and Anti-Monopoly Law at Peking University in Beijing. I was thrilled to be invited to participate in the conference. A special thanks to Hongbin Cai of Peking University for the invitation, and for organizing an all ... Peking University IEPR Antitrust Conference

Are Chimps Smarter than Humans?

I’ve previously hypothesized that the persistence of legal rules that lead to less overall wealth but seemingly more equitable distributions (rules such as the insider trading ban and Regulation FD) may stem from the fact that individuals are “hard-wired” to favor fairness, even if they must sacrifice some wealth to achieve it. That seems to ... Are Chimps Smarter than Humans?

Event Studies, Fischel, Bradley, and John Armstrong

I have long held reservations about corporate governance research that hinges on event studies.  (An event study is “an analysis of whether there was a statistically significant reaction in financial markets to past occurrences of a given type of event that is hypothesized to affect public firms’ market values.†An example of the sort of ... Event Studies, Fischel, Bradley, and John Armstrong

Goolsbee (and Obama?) on Free Trade

Here is Senator Obama’s economic advisor Austan Goolsbee on globalization and free trade (as described by George Will in his recent column): “Globalization” means free trade and various deregulations that supposedly put downward pressure on American wages because of imports from low-wage countries. Goolsbee, however, says globalization is responsible for “a small fraction” of today’s ... Goolsbee (and Obama?) on Free Trade

Glen Whitman on Waldfogel's Tyranny of the Market

Over at Agoraphilia, Glen Whitman has a series of entertaining posts applying economic logic to a number of interesting topics. If you read Glen on a regular basis, than you won’t be surprised that the topics include things like restroom hand dryers and toilet seat signaling. But the post that caught my attention this week ... Glen Whitman on Waldfogel's Tyranny of the Market

Bootleggers and Baptists, Madison Style

Last Wednesday, the Wisconsin Supreme Court heard oral argument on whether to reinstate an antitrust lawsuit against taverns around the University of Wisconsin (story here). In 2002, the taverns agreed to eliminate drink specials after 8:00 PM on Fridays and Saturdays. A group of students filed a class action lawsuit against the taverns for injunctive ... Bootleggers and Baptists, Madison Style

Predicting the Nobel Again …

Greg Mankiw and Tyler Cowen have started the speculation. Cowen prefers “Anne Krueger, Jagdish Bhagwati, and Gordon Tullock for their work on rent-seeking” but predicts a behavioral finance prize to Fama, Thaler & French or a prize for research on the principal-agent theory of the firm to Williamson and/or Tirole. Mankiw predicts Fama, Feldstein, or ... Predicting the Nobel Again …

Financial Times Email Forum on Microsoft CFI

Richard Epstein and Harry First answer email questions about the Microsoft CFI decision here.  The answers predictably provide very different perspectives on the merits of the decision and its likely impact on consumer welfare.  HT: Chicago Law Blog.

Thom, Tom, and Section 2

I highly recommend co-blogger Thom’s paper (discussed in this post) for those interested in the current Section 2 debate over the appropriate standard for exclusionary conduct.  While I tend to fall into the camp that views unilateral firm conduct as too diverse for a “holy grail” test to make sense, and therefore support different tests ... Thom, Tom, and Section 2

Hazlett on Property Rights and Innovation

My colleague Tom Hazlett has a characteristically insightful essay in the Financial Times this week entitled “How the Walled Garden Promotes Innovation.” In response to critics that argue that “only a device that is optimised for any application and capable of accessing any network is efficient,” Hazlett offers Apple and DoCoMo as examples of how ... Hazlett on Property Rights and Innovation

Weyerhaeuser and the Search for Antitrust’s Holy Grail

I’ve just posted my latest antitrust article, Weyerhaeuser and the Search for Antitrust’s Holy Grail, to SSRN. Here’s the abstract: A general definition of exclusionary conduct has become a sort of Holy Grail for antitrust scholars. At present, four proposed definitions appear most promising: (1) conduct that could exclude an equally efficient rival; (2) conduct ... Weyerhaeuser and the Search for Antitrust’s Holy Grail

Edwards, Antitrust, and the Return of Von's Grocery?

AAI continues its series of antitrust policy statements from presidential candidates with a submission from John Edwards. Again, I’m very pleased that the AAI was successful in getting this series of submissions together and inducing candidates to share their thoughts on antitrust policy. So what does Edwards have to say? Edwards’ statement has in common ... Edwards, Antitrust, and the Return of Von's Grocery?