Winter in Helsinki
Jouko Hiltunen gazed out the window into the midday twilight. Eight stories down, across the plaza and promenade, the Helsinki harbor was already blanketed under a dusting of snow. By Christmas, the ice would be thick enough for walking out to the castle at Suomenlinna. Jouko turned back to his computer screen. His fingers found ... Winter in Helsinki
An Economist’s Touch: Josh Wright’s FTC Legacy
The FTC was the brain child of Progressive Era technocrats who believed that markets could be made to run more effectively if distinguished experts in industry and economics were just put in charge. Alas, as former FTC Chair Bill Kovacic has chronicled, over the Commission’s first century precious few of the Commissioners have been distinguished ... An Economist’s Touch: Josh Wright’s FTC Legacy
Dan Crane: Fact Checking Kessler’s “Fact Checking” on Direct Distribution
The following post was authored by Dan Crane, the Frederick Paul Furth, Sr. Professor of Law at the University of Michigan Law School and an occasional TOTM contributor. Last week, I released a public interest group open letter in support of Tesla’s right to distribute its cars directly. The letter attracted quite a bit of ... Dan Crane: Fact Checking Kessler’s “Fact Checking” on Direct Distribution
The car dealers’ sneak attack in Michigan
As we have reported frequently on this blog (see, e.g., here, here, here, here, here and here) the car dealers have been making remarkably silly arguments in their fight to prevent Tesla from distributing its electrical vehicles directly to consumers. Now, I’m embarrassed to report that they’ve succeeded in moving from silly to disingenuous in my home ... The car dealers’ sneak attack in Michigan
Tesla Wins Big in Massachusetts
On September 15, Tesla won a big victory in Massachusetts. As we have previously chronicled at length on TOTM ( see, e.g., here, here, here, here, here and here), the car dealers are waging a state-by-state ground war to prevent Tesla from bypassing them and distributing directly to consumers. The dealers invoke 1950s-era franchise protection laws that ... Tesla Wins Big in Massachusetts
The Revelations of GM’s Anti-Tesla Letter
As Geoff posted yesterday, a group of 72 distinguished economists and law professors from across the political spectrum released a letter to Chris Christie pointing out the absurdities of New Jersey’s direct distribution ban. I’m heartened that both Governor Christie and his potential rival for the 2016 Republican nomination, Texas Governor Rick Perry, have made statements, ... The Revelations of GM’s Anti-Tesla Letter
Dealer protectionism in New Jersey
Last summer I blogged here at TOTM about the protectionist statutes designed to preempt direct distribution of Tesla cars that are proliferating around the country. This week, New Jersey’s Motor Vehicle Commission voted to add New Jersey to the list of states bowing to the politically powerful car dealers’ lobby. Yesterday, I was on Bloomberg’s ... Dealer protectionism in New Jersey
Dan Crane on Section 5 and Principles of Self-Restraint
I’m delighted that Josh and Maureen have launched a concerted effort to have the FTC articulate clear principles for Section 5 enforcement. My own views on the proper scope of Section 5 are articulated in my book The Institutional Structure of Antitrust Enforcement. I won’t attempt a comprehensive regurgitation here, but just offer three quick ... Dan Crane on Section 5 and Principles of Self-Restraint
Tesla and the Auto Dealers Lobby
In Continental T.V. v. GTE Sylvania (1977), Justice Powell observed that antitrust law should go easy on manufacturer restraints on dealer resale because manufacturers could always decide to integrate forward into distribution and bypass dealers altogether. As anyone who has followed electric car manufacturer Tesla’s recent travails will know, Justice Powell’s observation is not true ... Tesla and the Auto Dealers Lobby
Final Reply to Steve Salop
Dan’s final post responding to Steve’s latest post. Other posts in the series: Dan, Steve, Dan, Steve, Dan, and Thom. It seems that it’s time to wind down and that a further tit-for-tat might not be productive, so I’ll close with a final comment on the first point that Steve makes—one that may undergird much of our disagreement. Steve asserts that “the $71 ... Final Reply to Steve Salop
A Further Reply to Steve Salop
Dan’s next installment, responding to Steve’s latest post responding to Dan’s latest post on the appropriate liability rule for loyalty discounts. Other posts in the series: Steve, Dan, and Thom. I’m happy to keep going back in forth with Steve until we wear out our welcome at TOTM, or simply wear out. [Keep ’em coming! – ed.] (1) There’s neither input foreclose ... A Further Reply to Steve Salop
Wright is Right, and Wright is Wrong: A Response to Steve Salop on Loyalty Discounts
Guest post by Dan Crane, responding to Steve’s post responding to Dan’s earlier post and Thom’s post on the appropriate liability rule for loyalty discounts. Something that Thom and I both said in our earlier posts needs to be repeated at the outset: I don’t know of anyone who disagrees with Steve and Josh that raising rivals’ costs (“RRC”) and ... Wright is Right, and Wright is Wrong: A Response to Steve Salop on Loyalty Discounts
