Network Effects in FTC v Meta
The Federal Trade Commission’s (FTC) ongoing antitrust case against Meta has brought network effects into the spotlight, as the agency’s complaint and opening statement both lean heavily on networks as a source of competitive harm. But the commission’s arguments fundamentally misunderstand how network effects interact with competition in digital markets. Far from being solely anticompetitive ... Network Effects in FTC v Meta
Stop Saying a Value-Added Tax Is an Export Subsidy
In a recent Financial Times opinion piece, Jason Cummins (who holds a Ph.D. in economics from Columbia University) argued that the Trump administration should impose a 25% tariff on European goods to offset an “unfair advantage” from Europe’s value-added tax (VAT) system. According to Cummins, European exporters like BMW Group enjoy an “implicit subsidy” when they ... Stop Saying a Value-Added Tax Is an Export Subsidy
Competition Confusion in the UK
UK Member of Parliament (former Conservative Party Cabinet Minister) Kit Malthouse published an essay in CapX earlier this month titled “We need a competition revolution.” I, of course, completely agree that competition is vitally important to any economy, and the UK has been struggling with productivity and growth challenges that may be linked to competition ... Competition Confusion in the UK
Prices Are Signals (and Politicians Keep Shooting the Messenger)
Back in November, I outlined eight economic insights that matter for policy. I promised to explain them one by one. It’s taken me months to get to that—not because I forgot, but because this concept is a central part of the book I’m working on. I wanted to make sure I had all the parts lined up, ... Prices Are Signals (and Politicians Keep Shooting the Messenger)
Beyond Market Definition: Key Economic Concepts in FTC v Amazon
The Federal Trade Commission’s (FTC) antitrust suit against Amazon, originally filed in October 2023, is scheduled for trial in October 2026. While we’ve previously explored the market-definition questions at the center of this case, several other economic concepts will be equally important in determining whether Amazon has violated antitrust laws. Ahead of a scheduled March ... Beyond Market Definition: Key Economic Concepts in FTC v Amazon
Market Definition in FTC v. Amazon: A Crucial Battleground
The Federal Trade Commission’s (FTC) antitrust suit against Amazon, originally filed in October 2023, is scheduled for trial in October 2026. In the meantime, the U.S. District Court for the Western District of Washington has scheduled a March 7 “economics day” hearing to focus on fundamental economic concepts that will shape the case—including the crucial ... Market Definition in FTC v. Amazon: A Crucial Battleground
Stop Blaming Rising Egg Prices on Market Power
Egg prices are in the news again. Policy responses will likely follow. But not all policy responses make sense. Commissioner Alvaro Bedoya of the Federal Trade Commission (FTC) recently highlighted empty egg shelves and skyrocketing prices, calling for an investigation into potential market manipulation. While his concerns about the egg industry’s supply chain deserve attention, basic ... Stop Blaming Rising Egg Prices on Market Power
The FTC Shouldn’t Turn Back the Clock on Merger Analysis
In a recent memo to staff of the Federal Trade Commission (FTC), Chairman Andrew Ferguson explained that they should continue using the merger guidelines that the FTC and U.S. Justice Department Antitrust Division adopted jointly in 2023. Ferguson’s memo noted that “the clear lesson of history is that we should prize stability” in merger policy. ... The FTC Shouldn’t Turn Back the Clock on Merger Analysis
The Paradox of Google Search Remedies
The U.S. Justice Department (DOJ) won its antitrust case against Google last year, establishing that the company illegally maintained its monopoly in “general search” and “general search text advertising” markets through exclusive default contracts. Now comes the hard part: crafting effective remedies. I’m on record as saying the question of remedies would be difficult in ... The Paradox of Google Search Remedies
Chaos Kills Coordination
Policy chaos doesn’t just make headlines; it fundamentally disrupts economic calculation and prosperity. Like a stone thrown into still water, chaos ripples through the economy in ways that are hard to see but that can be profoundly destructive to prosperity and growth. Its effects also ripple outward: freezing investment, distorting prices, and disrupting the calculations ... Chaos Kills Coordination
The FTC’s Last-Ditch Effort to Revolutionize Antitrust
Lina Khan built her name arguing that modern antitrust enforcement was fundamentally broken. Her meteoric rise from law student to chair of the Federal Trade Commission (FTC) was fueled by calls to radically restructure how we think about competition. Under her leadership, the FTC spent four years failing to revolutionize antitrust, while succeeding on bread-and-butter ... The FTC’s Last-Ditch Effort to Revolutionize Antitrust
Congestion Pricing Reduces Driving. That Doesn’t Make It a Good Idea.
The early data from New York City’s congestion-pricing experiment is rolling in. If you look at affected routes, you see a clear drop when the fee kicks in. For routes that are unaffected, we saw no change. So far, it seems the basic prediction from supply and demand holds true. When the price of driving into Manhattan is raised, ... Congestion Pricing Reduces Driving. That Doesn’t Make It a Good Idea.
