Showing archive for: “Economics”
Reserve Judgment: The FTC Takes on Amazon’s Ad Auctions
The price to beat in Amazon’s advertising auctions may not have come from another advertiser at all, according to a lawsuit filed Aug. 31 by the Federal Trade Commission (FTC). In the complaint, the FTC alleges that Amazon quietly set the price itself, promising one pricing rule and using another. That allegation could support a ... Reserve Judgment: The FTC Takes on Amazon’s Ad Auctions
Certified Uncertain: Why AI Safety Needs Assurance Tests, Not Permission Slips
OpenAI put tens of thousands of artificial-intelligence (AI) agents through a safety test and told them to work alone. Instead, some found one another, organized against the evaluator, and learned to falsify parts of the record. The episode should reset the terms of the AI-safety debate. Testing, red teaming, and independent investigation remain essential. Their ... Certified Uncertain: Why AI Safety Needs Assurance Tests, Not Permission Slips
Competing Too Well: Europe’s New Guide to Dominance
Brussels has finally given Article 102 an instruction manual. Issued Sept. 3, the European Commission’s first comprehensive Guidelines on exclusionary abuses of dominance under the Treaty on the Functioning of the European Union (TFEU) replace a legal scavenger hunt with a single framework. The catch is that the manual still gives the Commission considerable room ... Competing Too Well: Europe’s New Guide to Dominance
Location, Location, Litigation: The Antitrust Fight Over Private Listings
In the late 1800s, real estate agents gathered at local associations to exchange information about the homes they were trying to sell. The intuitive logic was that the best way to make a sale was to spread the word. The real estate market has evolved considerably since then, but buyers and sellers, typically through their ... Location, Location, Litigation: The Antitrust Fight Over Private Listings
Your Price May Vary: The FTC’s Personalized-Pricing Puzzle
A price that knows your name may be creepy. It may also be a bargain. That ambiguity sits at the heart of the Federal Trade Commission’s (FTC) proposed enforcement policy statement on personalized pricing, which opens with a candid admission: The practice is “not well understood,” and its effects on consumers remain “unclear.” That uncertainty ... Your Price May Vary: The FTC’s Personalized-Pricing Puzzle
‘The Use of Knowledge in Society,’ by Friedrich A. Hayek
The wealth and technological sophistication of modern society are readily apparent. Less visible, but no less remarkable, is its ability to coordinate the actions of billions of people who know almost nothing about one another’s circumstances. Every day we make decisions without possessing most of the information on which those decisions ultimately depend. We purchase ... ‘The Use of Knowledge in Society,’ by Friedrich A. Hayek
Fine Print for Every Price: The FTC’s One-Size-Fits-All Guidance
My first post at Truth on the Market—where I called myself a “Refugee from the FTC”—briefly discussed an advance notice of proposed rulemaking (ANPR) published in the Federal Register by the Federal Trade Commission (FTC) under Chair Lina Khan. This one bore the expansive title “Trade Regulation Rule on Commercial Surveillance and Data Security.” I ... Fine Print for Every Price: The FTC’s One-Size-Fits-All Guidance
‘Deliberation as Self-Discovery and Institutions for Political Speech,’ by Catherine Hafer and Dimitri Landa
The We Are What We Read series is, in part, about what defines the field of law & economics. The field’s natural home lies in applications that are, well, economic. Hence its longstanding—and now standard—role in contracts, corporations, antitrust, torts, and other areas. For this selection, I wanted to show how law & economics can ... ‘Deliberation as Self-Discovery and Institutions for Political Speech,’ by Catherine Hafer and Dimitri Landa
The Data Center Chessboard Has No Pause Button
The whole country ostensibly wants America to win the artificial intelligence (AI) race. A striking number, however, would prefer someone else’s town to host the data centers, power plants, transmission lines, and cooling systems required to run it. Adam Smith knew the type. In “The Theory of Moral Sentiments,” he warned against the “man of ... The Data Center Chessboard Has No Pause Button
A Patent, a Blood Test, and 20 Years of Waiting
A blood test now helps doctors decide, in about 15 minutes, whether a patient with a suspected brain injury needs a CT scan. It took about 20 years to get there. That gap between scientific promise and clinical use tells us more about American innovation policy than most congressional hearings ever will. At one such ... A Patent, a Blood Test, and 20 Years of Waiting
Private Credit, Public Panic: Why Life Insurers Are Stronger Than the Headlines Suggest
Private credit has become the financial system’s latest designated villain: opaque, fast-growing, and—depending on the headline—one bad quarter away from dragging insurers, banks, and retirees down with it. For the past two years, warnings about life insurers’ private-credit investments have become a staple of financial commentary. In 2024, the International Monetary Fund cautioned that private ... Private Credit, Public Panic: Why Life Insurers Are Stronger Than the Headlines Suggest
The Fatal Conceit Gets a GPU Cluster: Bernie Sanders’ Plan to Socialize AI
The American A.I. Sovereign Wealth Fund Act rests on a sweeping claim about the ownership of value created by artificial intelligence. Because AI models are trained on data generated by the public, the bill treats the resulting gains as a public resource subject to state control and redistribution. Sen. Bernie Sanders’ (I-Vt.) proposal would require ... The Fatal Conceit Gets a GPU Cluster: Bernie Sanders’ Plan to Socialize AI
