Showing archive for: “Efficiencies”
‘The Economics of the Marriage Contract: Theories and Evidence,’ by Niko Matouschek and Imran Rasul
Marriage is a natural subject for law & economics scholars. From Gary Becker’s “A Treatise on the Family” (1981) to Margaret Brinig’s “From Contract to Covenant” (2000), scholars have expanded our understanding of romantic love by examining it through an economic lens. Some object that bringing law & economics into marriage risks coarsening and cheapening ... ‘The Economics of the Marriage Contract: Theories and Evidence,’ by Niko Matouschek and Imran Rasul
Prime Targets: Amazon, No-Poach Rules, and the Limits of Antitrust
The State of New Jersey’s antitrust case against Amazon begins with a serious allegation: that Amazon restricted drivers from moving among competing delivery contractors. But the state’s complaint goes much farther. It argues that Amazon’s entire Delivery Service Partner (DSP) system unlawfully gives the company monopsony power over both the small businesses that deliver its ... Prime Targets: Amazon, No-Poach Rules, and the Limits of Antitrust
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
Four Patents and a Time Machine: CareFirst and the Perils of Backdated Antitrust
Four patents can carry a lot of antitrust baggage—especially when they come tucked inside a portfolio of more than 500. In CareFirst of Maryland v. Johnson & Johnson, health insurer CareFirst alleges that Johnson & Johnson unlawfully acquired and later asserted four patents to delay competition from biosimilars, highly similar alternatives to biologic drugs, for ... Four Patents and a Time Machine: CareFirst and the Perils of Backdated Antitrust
Too Many Cooks Spoil the Settlement
In American antitrust, clearing the federal gate increasingly means arriving at the state turnstiles. State attorneys general play a valuable role when harms are local or federal investigators miss key facts. But serial challenges to nationally integrated conduct turn that safeguard into a standing invitation to relitigate. The result is a system in which no ... Too Many Cooks Spoil the Settlement
The Bundle of All Fears: India’s Risky War on Integration
Good intentions make for lousy competition law when they are stapled to bad economics. That is the trouble with the new fashion in digital regulation: It treats integration as suspicion, product design as coercion, and innovation as something firms may pursue only after regulators decide it is sufficiently tidy. The European Union’s Digital Markets Act ... The Bundle of All Fears: India’s Risky War on Integration
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
Canada’s Merger Guidelines: Size on Trial
Canada is on the verge of hard-coding costly mistakes into its merger policy. The Competition Bureau’s proposed merger guidelines aim to translate Parliament’s recent overhaul of the Competition Act into enforcement practice. The draft instead risks entrenching a merger regime that treats market structure as destiny, discounts consumer-benefiting efficiencies, and substitutes blunt presumptions for evidence ... Canada’s Merger Guidelines: Size on Trial
Antitrust Unmoored: Constitutional Limits on California’s RSFC
Much ink has been spilled on a draft California antitrust bill’s treatment of single-firm conduct. Most critiques focus on its economic flaws—particularly its departure from settled federal antitrust principles and the policy costs that follow. The bill’s constitutional vulnerabilities deserve equal scrutiny. If California lawmakers remain unmoved by the economic risks of imposing new burdens ... Antitrust Unmoored: Constitutional Limits on California’s RSFC
‘Market Power in Antitrust Cases,’ by William M. Landes and Richard A. Posner
William M. Landes and Richard A. Posner’s 1981 Harvard Law Review article “Market Power in Antitrust Cases” is a true classic. Showing the value of interdisciplinary work within the law & economics tradition, it brought real clarity to what “market power” means and how courts should assess it—cutting through vague labels like “monopoly power” and ... ‘Market Power in Antitrust Cases,’ by William M. Landes and Richard A. Posner
The Invisible Hand Screws Up Your Regression
You’ve probably heard the claim: “Chinese imports destroyed millions of American manufacturing jobs.” Most likely, that number comes from the famous “China Shock” research by David Autor, David Dorn, and Gordon Hanson. It’s become a fixture in trade debates. In that original paper, Autor, Dorn, and Hanson compared regions with different exposure to Chinese import competition. ... The Invisible Hand Screws Up Your Regression
Vertical Restraints in the EU: Economics Has Updated, Law Hasn’t Installed the Patch
Online commerce has transformed how firms design their distribution systems, yet EU competition law continues to treat many online-sales restrictions as suspect by default. This tension lies at the heart of today’s vertical restraints debate. While the economic theory of vertical agreements has been largely settled for decades, the legal framework has not fully absorbed ... Vertical Restraints in the EU: Economics Has Updated, Law Hasn’t Installed the Patch
