Showing results for: “coase”
Starbucks, Subway, and Antitrust
A few days ago, I posted a comment about Starbucks’ recent disclosure that its average per store traffic has gone down slightly even though overall profits have gone up. I suggested a number of explanations for these phenomena consistent with a story that consumer taste for the Starbucks product has not diminished. One of these ... Starbucks, Subway, and Antitrust
The Aftermath of a Type I Error: The Case of Conwood Co. v. United States Tobacco
It looks like California consumers, unlike their counterparts in several other states, will be getting cash instead of coupons in their settlement against U.S. Tobacco in one of the many follow-on actions to Conwood Co. v. United States Tobacco. The settlement looks to be in the range of $96 million with qualifying customers taking home ... The Aftermath of a Type I Error: The Case of Conwood Co. v. United States Tobacco
Read Marc Hodak
His short post is here. The theme is, in essence, Bastiat’s “What is Seen and What is Not Seen.” Government (and, oh, I don’t know . . . antitrust regulators in particular) thrive on the unseen–as Marc puts it, on the unfortunate reality that “invisible opportunity costs stay[] that way.” As I argued at some ... Read Marc Hodak
How Steve Levitt Might Save Economics
There’s been enough attention paid to the question of whether Steve Levitt is ruining economics. I did my share to contribute to the focus on this question. My bad. But now even Levitt himself has responded to Scheiber’s claim that he is ruining economics. His response: “No I haven’t, and you wouldn’t know it if ... How Steve Levitt Might Save Economics
Klein v. Coase III: Fisher Body-General Motors Again (and Again)
Peter Klein‘s post over at the always excellent Organizations and Markets reminded me that I have been wanting to blog about the most recent exchange between Ben Klein and Ronald Coase over the asset specificity, vertical integration, and the famous Fisher Body – General Motors example which has become a classic example of hold up ... Klein v. Coase III: Fisher Body-General Motors Again (and Again)
Coase, Penalty Defaults, and the Disgorgement Remedy for Breach of Fiduciary Duty
Law students, I have found, often have a hard time seeing how the Coase Theorem applies outside the context of land use conflicts. They also tend to think Coase’s insight is not so important because, they recite (parroting some of their professors), “Transactions costs are always present.” This saddens me, for the more I look ... Coase, Penalty Defaults, and the Disgorgement Remedy for Breach of Fiduciary Duty
Revisiting Two Classics as the New Semester Begins
Last Friday was the first day of my Business Organizations class. We began with two articles that have profoundly influenced my thinking about the world in general and the business world in particular. To inaugurate the new semester, I thought I’d take a moment and pay tribute to the insights in those articles (and solicit ... Revisiting Two Classics as the New Semester Begins
Pathbreaking Work in Modern Law and Economics?
A project I am working on, and will blog about in the near future, has got me thinking about the following question which I would like to pass along to our readers and my co-bloggers for their thoughts: What, if any, are the truly pathbreaking contributions to economic analysis of law in the last twenty ... Pathbreaking Work in Modern Law and Economics?
"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"
Teaching Law Students Economics
Larry Ribstein has an interesting post responding to Professor Warren’s discussion of her own classroom experiences teaching Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585, 593-94 (1991). Professor Warren describes a discussion with her students involving the notion raised by Justice Blackmun that “passengers who purchase tickets containing a forum clause like that at ... Teaching Law Students Economics
Explaining Backdating (and Jenkins Channels Manne Again)
Holman Jenkins reports that a group of economists led by Milton Friedman and Harry Markowitz are getting behind the idea of putting an end to the expensing of options. It is a great column. Jenkins goes on to discuss options backdating and makes the following points, which will sound unfamiliar to TOTM readers: “In no ... Explaining Backdating (and Jenkins Channels Manne Again)
Posner on the Overlapping Generations of Law and Economics
Richard Posner reviews Steven Shavell’s Foundations of Economic Analysis of Law in the most recent issue of Journal of Economic Literature (June 2006). Not to take anything away from Posner’s review of the merits of Shavell’s treatise, and his detailed analysis of Shavell’s treatment of particular areas of law (e.g. intellectual property), but to me ... Posner on the Overlapping Generations of Law and Economics
