The World Wants Cures. America Gets the Check.
Everyone wants the next medical breakthrough. Few want the bill. The United States pays a disproportionate share of the cost of pharmaceutical innovation, while other wealthy countries hold down medicine prices and count on the research to keep coming. Yet much of the U.S. policy debate proposes copying their approach: because Americans frequently pay more ... The World Wants Cures. America Gets the Check.
AI Insurance and the Backstop Reflex: A Policy for Every Risk, a Taxpayer for Every Loss
Washington has a standard playbook when it comes to emerging commercial risks: Make companies buy insurance coverage, then put taxpayers behind the losses. That prescription is gaining fans as artificial intelligence (AI) creates new liability risks. It skips the question insurers need answered first. What, exactly, will courts hold their customers liable for? Nearly a ... AI Insurance and the Backstop Reflex: A Policy for Every Risk, a Taxpayer for Every Loss
Beyond Tariffs: Free Trade and the Friends-and-Family Plan
A trade deal can lower tariffs and yet still leave the hardest barriers untouched. The shipment clears customs, but the supplier cannot get a license, bid for a government contract, or compete with a subsidized state firm. The border is nominally open, but the market has other arrangements. As I argue in a new Mercatus ... Beyond Tariffs: Free Trade and the Friends-and-Family Plan
Two Years, 57 Pages, No Merger: Amazon, Anthropic, and Brazil’s Filing Problem
The wave of artificial intelligence (AI) partnerships and “acqui-hires”—deals to acquire a company’s talent—has reached Brazil. The tribunal of Brazil’s Administrative Council for Economic Defense (CADE) decided its first batch of such cases involving large technology firms and AI startups in May. A second round followed in September with Amazon/Anthropic—the would-be merger that turned out ... Two Years, 57 Pages, No Merger: Amazon, Anthropic, and Brazil’s Filing Problem
Proof of Age, Leap of Faith: The EU KIDS Act’s Security Gamble
The European Commission’s proposed EU KIDS Act would bar children under 15 from creating or using accounts on certain social-networking and video-sharing services, with a guardian-controlled option for 13- and 14-year-olds. It would also require providers to build broader safety protections into their services. Both sets of obligations would rely on age assurance—methods for verifying ... Proof of Age, Leap of Faith: The EU KIDS Act’s Security Gamble
The Garden State’s War on the Good Deal
New Jersey lawmakers have found a way to spare small grocers the sting of missing out on a discount: make suppliers think twice about offering one to anybody. If a cereal maker gives Walmart a better deal than a corner market in Newark, a bill before the state’s General Assembly would require the supplier to ... The Garden State’s War on the Good Deal
California’s COMPETE Act: May the Best Firm Lose
Gov. Gavin Newsom has signed Assembly Bill 1776, the so-called COMPETE Act, making California the first state to add a general prohibition on anticompetitive conduct by individual firms to its principal antitrust statute. Newsom’s announcement casts the law as a way to help small businesses and stop large companies from “shutting out competition.” The law ... California’s COMPETE Act: May the Best Firm Lose
No Country for Young Posters: Social Media Bans Outrun the Evidence
Governments around the world are rushing to address the youth mental health crisis, with social media squarely in their sights. From Capitol Hill to Paris to Sydney, lawmakers are proposing or enacting strict age restrictions that would ban teenagers from creating social media profiles. But are these heavy-handed mandates the right approach? A recent white ... No Country for Young Posters: Social Media Bans Outrun the Evidence
Pump and Circumstance: The Politics of Italy’s Fuel-Price Caps
The Italian government is claiming a victory at the pump. Eni, the country’s largest oil company, has announced a 30-day cap on retail fuel prices. Italy’s second-largest fuel retailer, IP, controlled by the State Oil Company of Azerbaijan Republic (Socar), followed suit, as did the third-largest, Q8. Smaller rivals warn that the caps could squeeze ... Pump and Circumstance: The Politics of Italy’s Fuel-Price Caps
The Case of the Missing Sale: The FTC’s Personalized-Pricing Blind Spot
Suppose a retailer charges $10 for a service. One customer values it at $11 and buys it. Another values it at $8 and walks away. The retailer sends the second customer a $3 coupon. She pays $7, gets something worth $8 to her, and the retailer makes a sale it otherwise would have missed. The ... The Case of the Missing Sale: The FTC’s Personalized-Pricing Blind Spot
The Rivals Antitrust Can’t See
The next serious competitor may be waiting for a license, or working on a product nobody has seen yet. Neither shows up in today’s market-share figures. And much of the current antitrust debate ignores both of those figures completely, even as it ponders how aggressively the government should reshape markets. By contrast, a dynamic approach ... The Rivals Antitrust Can’t See
The EPA Takes Its Thumb Off the Power Switch
Power-plant rules do more than regulate pollution. They can also regulate competitors out of the market. That is the overlooked significance of the Environmental Protection Agency’s (EPA) recent repeal of most Biden administration greenhouse-gas standards for power plants. The move is an environmental-policy reversal and also a competition-policy reform. The final rule is only a ... The EPA Takes Its Thumb Off the Power Switch
