Showing archive for: “Economics”
Artificial Intelligence, Natural Ignorance
Everyone in Washington seems to agree that artificial intelligence must be governed. The only real dispute is who gets the steering wheel. Congress? Federal agencies? State legislatures? Some newly minted task force with a long acronym and a taste for reporting requirements? That debate is already too narrow. President Donald Trump’s recent executive order on ... Artificial Intelligence, Natural Ignorance
‘Uncertainty, Evolution, and Economic Theory,’ by Armen Alchian
One of the most persistent criticisms of law & economics is that it rests on unrealistic assumptions. Economic models often assume firms maximize profits, investors respond rationally to incentives, and market participants systematically adjust their behavior in predictable ways. Critics frequently point to these assumptions as evidence that economic analysis is detached from reality. Real ... ‘Uncertainty, Evolution, and Economic Theory,’ by Armen Alchian
In Space, No One Can See Your HHI
Two rocket companies walk into an antitrust review. They leave as a de facto monopoly. And somehow, the punchline may be that this was good for consumers, taxpayers, and maybe even competition. A little context. In 2006, Boeing and Lockheed Martin combined their launch divisions into a joint venture called United Launch Alliance (ULA). That’s ... In Space, No One Can See Your HHI
‘Raid or Trade? An Economic Model of Indian-White Relations’ by Terry L. Anderson & Fred S. McChesney
The traditional domain of law & economics is the courtroom, the legislature, and the administrative agency. But in their 1994 article, “Raid or Trade? An Economic Model of Indian-White Relations,” Terry Anderson and Fred McChesney took the theoretical tools developed to explain modern legal disputes and set out to settle a wider continent. When European ... ‘Raid or Trade? An Economic Model of Indian-White Relations’ by Terry L. Anderson & Fred S. McChesney
Why Humans Are (Probably) Not Headed for the Glue Factory
There’s a popular argument that AI will do to human workers what tractors did to horses. Tractors could do what horses did. Horses became obsolete. AI can do what humans do. Therefore… Plenty of major AI figures seem to agree. Elon Musk says AI will “replace all jobs.” Anthropic CEO Dario Amodei regularly warns about ... Why Humans Are (Probably) Not Headed for the Glue Factory
‘Punitive Damages as Societal Damages,’ by Catherine M. Sharkey
Catherine Sharkey’s “Punitive Damages as Societal Damages” addresses a tension that has been obvious for decades, but usually treated as an annoyance: punitive damages are justified in public-regarding terms—punishment, deterrence, and condemnation—yet delivered through private litigation and typically paid to a single plaintiff. The doctrinal rhetoric often tracks conduct broad in scope, such as systematic ... ‘Punitive Damages as Societal Damages,’ by Catherine M. Sharkey
Grow the Pie, Skip the Sermon
In a recent Substack essay, “The progress movement needs a better theory of progress,” Brink Lindsey argues that the progress movement has settled for too thin a vision. It focuses on wealth creation and technological advance, he says, when it should adopt a “fuller conception of progress”—one that promotes “spiritual welfare” and thicker accounts of ... Grow the Pie, Skip the Sermon
The Waterbed Effect Doesn’t Hold Water
A familiar concern in antitrust-adjacent debates goes like this: when a company such as Walmart grows large enough, it can strong-arm suppliers into steep discounts. Suppliers, in turn, recoup those lost margins by charging smaller grocery stores more. Those smaller stores raise prices. The big chain’s gains come at everyone else’s expense—prices fall on one ... The Waterbed Effect Doesn’t Hold Water
Too Much Order, Too Soon: The Case Against AI Term Sheets
Washington may be closing in on an AI “term sheet.” The industry, meanwhile, is already writing its own rules. Recent commentary suggests U.S. artificial intelligence (AI) policy may be coalescing around a federal framework. A widely discussed Tech Policy Press piece argues that a short “term sheet” emerging from negotiations between the White House and ... Too Much Order, Too Soon: The Case Against AI Term Sheets
‘Market Power in Antitrust: Economic Analysis after Kodak,’ by Benjamin Klein
In 1992, the U.S. Supreme Court held in Eastman Kodak Co. v. Image Technical Services that a firm without market power in photocopiers might still possess market power in photocopier parts and service. The Court’s logic turned on opportunistic hold-up: Kodak could profit by trading short-run exploitation of locked-in customers for long-run losses in equipment ... ‘Market Power in Antitrust: Economic Analysis after Kodak,’ by Benjamin Klein
Truth Markets and Their Discontents
Markets might be able to price truth. Whether anyone wants to buy it is another question. In a recent post, we looked at a small cluster of systems that try to use markets to correct misinformation. Start with a simple analogy: bad information is a kind of pollution, a familiar problem in law & economics. ... Truth Markets and Their Discontents
100% Guaranteed (Not a Guarantee): Putting a Price on Truth
In a seventh-season episode of The Simpsons, Bart tunes in to the Impulse Buying Network and spends $350 on an animation cel from The Itchy & Scratchy Show. As part of the pitch, an IBN huckster proclaims: “Each one is absolutely positively 100% guaranteed to increase in value!” An immediate disclaimer follows: “not a guarantee.” ... 100% Guaranteed (Not a Guarantee): Putting a Price on Truth
