Section 2 Symposium: Thom Lambert on Defining and Identifying Exclusionary Conduct
There’s a fundamental problem with Section 2 of the Sherman Act: nobody really knows what it means. More specifically, we don’t have a very precise definition for “exclusionary conduct,” the second element of a Section 2 claim. The classic definition from the Supreme Court’s Grinnell decision — “the willful acquisition or maintenance of [monopoly] power ... Section 2 Symposium: Thom Lambert on Defining and Identifying Exclusionary Conduct
Because Barney Frank Knows Better Ways to Woo High-End Bank Clients
A couple of weeks ago, Rep. Barney Frank sent a snippy letter to Northern Trust, a Chicago-based bank that caters to very wealthy clients. Mr. Frank and some other Platonic guardians on the House Financial Services Committee were incensed that Northern Trust, a recipient of TARP funds, had sponsored and hosted clients at a California ... Because Barney Frank Knows Better Ways to Woo High-End Bank Clients
Who’s Your Nanny?
My law school classmate, M. Todd Henderson (Chicago Law), has posted an interesting paper on SSRN. The paper, entitled The Nanny Corporation and the Market for Paternalism, explores “Nannyism” by business firms and the government. Nannyism consists of imposing paternalistic rules designed to protect the governed — e.g., rules against smoking, drinking, over-eating, and engaging ... Who’s Your Nanny?
We Didn’t Hear the Question
I have a love/hate relationship with the wireless access in our law school classrooms. On the one hand, it saddens me that my students surf the Internet during class. On the other hand, Socratic dialogue goes so much faster when the students can IM each other answers. (Although I wish they’d be a little more ... We Didn’t Hear the Question
Is Obama’s Radicalism Killing the Dow?
Stanford economist Michael Boskin thinks so. He set forth his argument in the WSJ. After observing that President Obama’s budget “more than doubles the national debt held by the public, adding more to the debt than all previous presidents — from George Washington to George W. Bush — combined” and “would raise taxes to historically ... Is Obama’s Radicalism Killing the Dow?
Whole Foods Throws in the Towel — Congrats to the FTC!
The witch hunt is over. Last evening, the FTC announced that it would drop its antitrust action against high-end grocer Whole Foods in exchange for the chain’s agreement to sell 32 stores and to give up the rights to Wild Oats’ name. FTC Chairman Jon Leibowitz proclaimed that “[a]s a result of this settlement, American ... Whole Foods Throws in the Towel — Congrats to the FTC!
Competitive Resale Price Maintenance in the Absence of Free-Riding
I want to second Josh’s commendation of Ben Klein’s submission to the recent FTC Hearings on Resale Price Maintenance. Klein’s paper, which bears the same title as this post, is lucidly written (blissfully free of equations, Greek letters, etc.) and makes a point that, at this juncture in antitrust’s history, is absolutely crucial. In the ... Competitive Resale Price Maintenance in the Absence of Free-Riding
Kmiec on the Death of the GOP
I must begin this post with a clarification: I am not a Republican. Nor am I a Democrat. I really have little interest in defending one party over the other. I agree with the GOP on some matters, with the Democrats on others, and with neither party on a host of matters. In general, I ... Kmiec on the Death of the GOP
Zywicki on Judicial Modification of Mortgage Contracts
Earlier this week, I argued that courts should resist the urge to modify what turn out to be improvident commercial contracts. An unintended consequence of rewriting such contracts, I asserted, is that negotiated agreements would become unreliable, which would raise the risks associated with, and thereby discourage, wealth-creating exchanges. And real wealth creation — not ... Zywicki on Judicial Modification of Mortgage Contracts
Wanna Keep This Economic Mess to a Minimum? Honor Contracts.
New York Times business columnist Joe Nocera insists that current economic conditions call for courts to ignore carefully negotiated contracts between sophisticated business entities. Arguing that Dow Chemical Company should be free to walk away from its agreement to buy specialty chemical manufacturer Rohm & Haas, Mr. Nocera contends that “maybe, just maybe, deals that ... Wanna Keep This Economic Mess to a Minimum? Honor Contracts.
Too Bad They Couldn’t Get Bob Dole for the Ad
Those lame Super Bowl commercials have nothing on this one. (HT: Don Boudreaux)
More Hayek (and Buchanan), Less Keynes
Dick Armey has a nice op-ed in today’s Wall Street Journal. The piece, titled Washington Could Use Less Keynes and More Hayek, echoes points I made recently in criticizing the stimulus and advising President Obama on good stuff to read. Armey writes: Sound money policy, [Hayek argued], allowed the disparate knowledge of millions of economic ... More Hayek (and Buchanan), Less Keynes
