Showing archive for: “Economics”
Larry Ribstein, RIP
This morning our dear colleague, Larry Ribstein, passed away. The intellectual life of everyone who knew him, of this blog, and of the legal academy at large is deeply diminished for his passing. For me, as for many others, Larry was an important influence, not only intellectually but personally, as well. Larry was the godfather ... Larry Ribstein, RIP
Some Much-Needed Antitrust Skepticism on Senate Letter Urging FTC Google Investigation
Back in September, the Senate Judiciary Committee’s Antitrust Subcommittee held a hearing on “The Power of Google: Serving Consumers or Threatening Competition?” Given the harsh questioning from the Subcommittee’s Chairman Herb Kohl (D-WI) and Ranking Member Mike Lee (R-UT), no one should have been surprised by the letter they sent yesterday to the Federal Trade ... Some Much-Needed Antitrust Skepticism on Senate Letter Urging FTC Google Investigation
Should there be default fiduciary duties in Delaware LLCs and LPs?
A recently published on-line symposium calls needed attention to Delaware Chief Justice Myron Steele’s remarkable article, Freedom of Contract and Default Contractual Duties in the Delaware Limited Partnerships and Limited Liability Companies, 46 Am. Bus. L.J. 221 (2009) (no free link available). The Chief Justice makes an argument that is guaranteed to shock traditional business ... Should there be default fiduciary duties in Delaware LLCs and LPs?
Decriminalizing agency costs
The WSJ reports on comments by former FBI official David Cardona’s on why there haven’t been more prosecutions of financial executives as a result of the recent financial crisis: “There’s been a realization and a more deliberate targeting by the Department of Justice before we launch criminally on some of these cases” * * * ... Decriminalizing agency costs
Kahneman’s Time Interview Fails to Allay Concerns About Behavioral Law and Economics
TOTM alumnus Todd Henderson recently pointed me to a short, ten-question interview Time Magazine conducted with Nobel prize-winning economist Daniel Kahneman. Prof. Kahneman is a founding father of behavioral economics, which rejects the rational choice model of human behavior (i.e., humans are rational self-interest maximizers) in favor of a more complicated model that incorporates a number ... Kahneman’s Time Interview Fails to Allay Concerns About Behavioral Law and Economics
Holdup Problem, Airline Edition
Economists are all quite familiar with the “holdup problem,” i.e. one contracting partner exploiting the other after asset specific investments have been made. One classic law school textbook example is Alaska Packers v. Domenico in which the Alaska Packers’ Association hired Domenico for the salmon season for $50 plus 2 cents per salmon caught, but ... Holdup Problem, Airline Edition
Mason LEC Programs for Economics & Law Professors
The George Mason LEC has reinstituted the Economics Institute for Law Professors and the Law Institute for Economics Professors. I will be attending as faculty for the Economic Institute for Law Professors, where I will teach various aspects of microeconomic theory along with Michael Baye. The agenda for that program is available here. If you’ve ... Mason LEC Programs for Economics & Law Professors
Why do insiders trade illegally?
Not, as economic theory would predict, because they need the money, according to Bhattacharya and Marshall, Do They Do it for the Money? Here’s the abstract: Using a sample of all top management who were indicted for illegal insider trading in the United States for trades during the period 1989-2002, we explore the economic rationality ... Why do insiders trade illegally?
The Influence of Prospect Theory
Source.
Iowa University Prediction Markets
These things continue to fascinate me and provide lots of opportunity for procrastination. The Iowa University Prediction Market IEM has a new update on the Republican presidential primary: Romney Leads the Iowa Electronic Markets October 26, 2011 | The Iowa Independent by: Lynda Waddington The value of the former Massachusetts governor continues to rise above ... Iowa University Prediction Markets
The Bulldozer Solution to the Housing Crisis
My inaugural blog on two-sided markets did not elicit much reaction from TOTM readers. Perhaps it was too boring. In a desperate attempt to generate a hostile comment from at least one housing advocate, I have decided to advocate bulldozing homes in foreclosure as one (of several) means to relieve the housing crisis. Not with ... The Bulldozer Solution to the Housing Crisis
Chicago’s View on the Future of Law and Economics
A very interesting group of essays on the future of law and economics by ten University of Chicago professors. It is especially interesting in light of the attempt to revitalize law and economics in Chicago. The essays exhibit a great diversity in views of what lies in store for the future of law and economics ... Chicago’s View on the Future of Law and Economics
