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

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Directors and Time Management

I presented my “Not in Good Faith” paper at Cornell this past fall, and Professor Jeff Rachlinski (behavioral wonk, among other things) asked an interesting question that I would like to mention here.  (Let me remind you that my “not in good faith” paper deals with a director’s obligation to act “in good faith.”  My general ... Directors and Time Management

Cluster Hiring in Law Schools?

This article documents the “cluster hiring” strategy employed by the Duke Economics Department over the past several years (HT: Marginal Revolution). The article defines cluster hiring as: “recruiting groups of researchers who share an approach to an academic discipline and have existing relationships.”  Part of the motivation for this hiring strategy was simply to increase ... Cluster Hiring in Law Schools?

A Few Things Economics is Good For …

Professor D’Amato is at it again. And by “it,” I mean making overblown claims that economics is useless (you might recall our last exchange where I responded to his mistaken assertion that economics had not changed antitrust in “any noticeable way”). Here’s his latest from a comment over at Prawfs. Well, what exactly is economics ... A Few Things Economics is Good For …

Henderson on Law School Rankings

Bill Henderson has a characteristically thoughtful post on the relationship between law school rankings and law student attrition at ELS Blog. Bill provides some evidence, based on research from a paper co-authored with Andy Morriss (Illinois), that 1L attrition increased significantly in response to the 1997 incorporation of bar passage into its placement methodology. Bill’s ... Henderson on Law School Rankings

Dear Home Depot Board of Directors,

I write regarding the soon-to-be-vacant position of CEO of Home Depot.  As I understand it, the position pays well, little is demanded in terms of results, and the exit package is great.  I would like to be hired to fill the CEO position.  I realize Frank Blake has been tapped as the new CEO, but ... Dear Home Depot Board of Directors,

Manne on Shareholder Democracy

Henry Manne is back with another article in the WSJ.  This time Manne goes toe-to-toe with the “corporate democrats.” Profs Ribstein (“Shareholder democracy is just one of the burdens that public corporations have to bear these days”)  and Bainbridge (“it’s a brilliant spanking of the shareholder activists, which I highly commend to your attention”) have ... Manne on Shareholder Democracy

Rubinstein on Behavioral Economics

Ariel Rubinstein (Tel Aviv/ NYU Econ) has posted a critique of behavioral economics. The critique addressses theoretical behavioral economics and the empirical foundations of BE. On the theory: “The psychology and economics literature has replaced a dead parrot (ed. — referring to the model of full rationality) with one that is equally dead. If the ... Rubinstein on Behavioral Economics

Warren on Rationality, Choice, and Regulation in the Credit Card Market

Elizabeth Warren (Credit Slips) points to an interesting empirical study by Agarwal, Liu, Souleses, and Chomsisengphet (“ALSC”) which examines consumer credit card selection in a natural experiment setting in which a card company offers two cards to consumers: (1) a high interest rate, no annual fee card and (2) a low rate card with an ... Warren on Rationality, Choice, and Regulation in the Credit Card Market

The Economics of Customer Service

Is the retail customer willing to pay for customer service?  Gaggles of books have been written on the topic of customer service, and those books sell based on the belief that customers *care* about customer service.  But do they?  Do we?  Do I? The idea that somehow customer service matters to the customer is not ... The Economics of Customer Service

Investing for Joe Common Man/Gal

The Nowicki family Christmas dinner was tonight.  Michelle, the Nowicki family psychiatrist, said (to my FATHER, not me, the securities wonk) “How do I know what stock to invest in?  I don’t follow the market.  I don’t watch the stock shows on MSNBC.  Jim Cramer – the mad money guy – all of that.” After ... Investing for Joe Common Man/Gal

Two in the WSJ

Airlines and Antitrust. Kenneth Starr on Sarbox. The punchline: Even the statute’s co-author, Rep. Mike Oxley, has conceded that Sarbanes-Oxley was hastily written and enacted. In its rush to “do something” about corporate scandals, Congress overstepped the bounds of its authority. It is time to call Congress back, both to help our economy and reaffirm ... Two in the WSJ

"There is Little Evidence that Economic Analysis of Law Has Changed [Antitrust] in Any Noticeable Way"

Huh? This statement appears in this article by Professor Anthony D’Amato (Northwestern) on the failure of interdisciplinary scholarship in the legal academy. HT: Brian Leiter. Quite frankly, I was very surprised to see a claim like this in a paper written after 1970 or so. Even in corners of the academy hostile to economic analysis, ... "There is Little Evidence that Economic Analysis of Law Has Changed [Antitrust] in Any Noticeable Way"