Showing archive for: “Economics”
Sacrificing Consumer Welfare in the Search Bias Debate
Eric Clemons and Nehal Madhani have a posted a series of short blog posts on the Huffington Post focusing on Google, antitrust, and more specifically, vertical integration and search (Part I, Part II, and Part III). The articles contain much of the standard hand-wringing about vertical integration and its impact on consumer welfare. This is ... Sacrificing Consumer Welfare in the Search Bias Debate
Medical Devices
The GAO has recently issued a report on medical devices. The thrust of the report is that “high-risk” medical devices do not receive enough scrutiny from the FDA and that recalls are not handled well. This report and other evidence indicates that the FDA is likely to require more testing of devices. As of now, ... Medical Devices
Declaring Victory or Premature Celebration?
Russell Korobkin (UCLA) provocatively declares the ultimate victory of behavioral law and economics over neoclassical economics: I am declaring victory in the battle for the methodological soul of the law and economics discipline. There is no need to continue to pursue the debate between behavioralists (that is, proponents of incorporating insights previously limited to the ... Declaring Victory or Premature Celebration?
Congress jerks the SEC’s leash
Last week I argued that the SEC’s considering relaxing the rule requiring 1934 act registration of stock classes with more than 499 shareholders was not what it seemed. I noted that while this might look like a move toward liberalization by permitting more Facebook-style markets, it actually furthered a trend toward closing US securities markets ... Congress jerks the SEC’s leash
Net Neutrality, the MetroPCS Complaint, and Low-Income Consumers
I blogged a bit about the MetroPCS net neutrality complaint a few weeks ago. The complaint, you may recall, targeted the MetroPCS menu of packages and pricing offered to its consumers. The idea that MetroPCS, about one-tenth the size of Verizon, has market power is nonsense. As my colleague Tom Hazlett explains, restrictions on MetroPCS ... Net Neutrality, the MetroPCS Complaint, and Low-Income Consumers
Modes of mixing law and economics
Geoff Miller has a new must-read paper on the relationship between law and economics: Law and Economics versus Economic Analysis of Law. Here’s the abstract: This paper distinguishes law and economics – conceived as an equal partnership between two disciplines – and economic analysis of law, conceived as the application of economic reasoning to legal ... Modes of mixing law and economics
Manne and Wright on Search Neutrality
Josh and I have just completed a white paper on search neutrality/search bias and the regulation of search engines. The paper is this year’s first in the ICLE Antitrust & Consumer Protection White Paper Series: If Search Neutrality Is the Answer, What’s the Question? Geoffrey A. Manne (Lewis & Clark Law School and ICLE) and ... Manne and Wright on Search Neutrality
Pioneers of Law and Economics Available in Paperback
Pioneers of Law and Economics (with Lloyd Cohen) is now available in paperback. You can get it for 20% off the cover price at the link above (discounted price = $36). There are essays focusing on: Ronald Coase, Aaron Director, George Stigler, Armen Alchian, Harold Demsetz, Benjamin Klein, James Buchanan, Gordon Tullock, Henry Manne, Richard ... Pioneers of Law and Economics Available in Paperback
Type I errors in action, Google edition
Does anyone really still believe that the threat of antitrust enforcement doesn’t lead to undesirable caution on the part of potential defendants? Whatever you may think of the merits of the Google/ITA merger (and obviously I suspect the merits cut in favor of the merger), there can be no doubt that restraining Google’s (and other ... Type I errors in action, Google edition
Fred McChesney from Northwestern to Miami
Fred McChesney is leaving Northwestern (where he is Haddad Professor of Law) for a chair at the University of Miami (HT: Leiter). As Leiter notes, this is a major pickup for Miami. McChesney is a first-rate scholar and has done pioneering work in law and economics, public choice, corporate law, and antitrust. With more and ... Fred McChesney from Northwestern to Miami
Merger Retrospective
Several years ago, the DOJ cleared a merger between Whirlpool and Maytag. The primary defense was that post-merger prices could not rise because of intense competition from foreign competitors like LG and Samsung. Apparently the actual competition was more than Whirlpool wanted to bear. Guess What? Mr. Laissez-Faire Antitrust, meet Dr. Public Choice. The Wall ... Merger Retrospective
Smoothing Demand Kinks
One criticism of the unilateral effects analysis in the 2010 Merger Guidelines is that demand curves are kinked at the current price. A small increase in price will dramatically reduce the quantity demanded. One rationale for the kink is that people over-react to small price changes and dramatically reduce demand. As a result of this ... Smoothing Demand Kinks
