Showing archive for: “Economics”
The Collected Works of Henry G. Manne
I’m delighted to report that the Liberty Fund has produced a three-volume collection of my dad’s oeuvre. Fred McChesney edits, Jon Macey writes a new biography and Henry Butler, Steve Bainbridge and Jon Macey write introductions. The collection can be ordered here. Here’s the description: As the founder of the Center for Law and Economics ... The Collected Works of Henry G. Manne
Daubert and Antitrust Economics, Or When Should An Antitrust Economist Have Training in Economics?
Judge Saris’s district court opinion denying the motion to exclude one of the plaintiff’s economic experts in Natchitoches Parish Hospital v. Tyco International recently came across my desk. It is an interesting case involving allegations that Covidien, a leading supplier of “sharps containers” used for the disposal of various needle-involving medical products (syringes, IVs, etc.) ... Daubert and Antitrust Economics, Or When Should An Antitrust Economist Have Training in Economics?
Regulating Local Food Out of the Market
The Nanny Brigade has once again descended on the Windy City. It previously sought to protect us from unhealthy trans fats, smoking in private establishments that we voluntarily patronize, and those oh-so-offensive theatrical depictions of smoking. The Nannies are now working to protect Chicago’s well-heeled from risks associated with the locally produced, artisanal sausages sold ... Regulating Local Food Out of the Market
"Diminishing the price of law"
The lesson from Jones, see my post below, is that law untamed can be very costly, and with little benefit. This is, of course, not a new idea. In a critical essay of “Southey’s Colloquies on Society,” Lord Thomas Macaulay wrote eloquently about the cost of law and government: “Our rulers will best promote the ... "Diminishing the price of law"
Who decides how much to pay?
What is the proper role for judges in deciding how much investment advisers to mutual funds should be compensated? This is the question the Supreme Court will answer in Jones v. Harris Associates, argued last month. At first, the question seems silly: courts don’t get a say in how much I get paid or how ... Who decides how much to pay?
The Fee Neutrality Claim
Will reduction in interchange fees help or hurt consumers? Two posts yesterday made the conjecture that a reduction in one category of fees would only increase other fees, and that the overall sum of fees will not change. This is the fee-neutrality claim. Todd Zywicki writes: The mathematics of the situation is inescapable: card issuers ... The Fee Neutrality Claim
Debunking the ‘Cross-Subsidy’ Theory
In our earlier post, we observed that the GAO report on interchange got off on the wrong foot when it concluded that interchange fees were rising. We infer from the silence which greeted our post that everyone agrees with this criticism. Indeed, yesterday’s posts and comments appear to agree that the GAO’s report does very ... Debunking the ‘Cross-Subsidy’ Theory
What happened in Australia?
What happens when you take a key price in an industry and cut it in half? For normal markets economists would expect that this would have a dramatic effect on quantity. That, however, was not the experience in Australia when the Reserve Bank of Australian (RBA) used new powers in 2003 to move Visa and ... What happened in Australia?
Seven Truths About Regulating Interchange
Interchange fees on payment cards are obviously a hot topic in the United States, but also in Europe and in many other countries around the world. The report on interchange fees released last month by the US Government Accounting Office (GAO) notes that more than 30 countries have intervened or are considering intervening in the ... Seven Truths About Regulating Interchange
Underappreciated Economists: UCLA Edition
I’m late to the “name your favorite underappeciated economist game” that was kicked off in light of John Cassidy’s Pigou column. The Marginal Revolution crew points to Malthus and Fisher (Cowen and Tabarrok, respectively). My first instinct is to go with Armen Alchian. Though Armen has always been much appreciated on this blog. So I’m ... Underappreciated Economists: UCLA Edition
A Decision-Theoretic Rule of Reason for Minimum Resale Price Maintenance
My latest working paper, which bears the same title as this post, is now available on SSRN. In the paper, I address the challenge created by the Supreme Court’s 2007 Leegin decision, which abrogated the 96 year-old rule declaring resale price maintenance (RPM) to be per se illegal. The Leegin Court held that instances of ... A Decision-Theoretic Rule of Reason for Minimum Resale Price Maintenance
Should PeaceHealth Apply to De Facto Exclusive Dealing Claims?
Thom answers this question in the affirmative in his excellent post about the Ninth Circuit’s analysis in Masimo and is disappointed that the Ninth Circuit rejected the discount attribution standard as the sole test for Section 2 in favor of a separate inquiry as to whether the bundled discount arrangement resulted in a substantial foreclosure ... Should PeaceHealth Apply to De Facto Exclusive Dealing Claims?
