Showing archive for: “Efficiencies”
Competition in the Evolving Digital Marketplace–Congressional Hearing
I will be testifying tomorrow before the House Judiciary Committee’s Subcommittee on Courts and Competition Policy on competition in the digital marketplace. My testimony won’t be surprising to readers of this blog–in fact some of it was lifted directly from blog posts that have appeared here. Also on the panel are Richard Feinstein from the ... Competition in the Evolving Digital Marketplace–Congressional Hearing
The Roberts Court and the Limits of Antitrust
I’ve just finished a draft of a paper for an upcoming conference on the Roberts Court’s business law decisions. Volokh blogger Jonathan Adler, who directs the Center for Business Law and Regulation at Case Western, is organizing the conference. The other presenters are Adam Pritchard from Michigan (covering the Court’s securities decisions), Brian Fitzpatrick from ... The Roberts Court and the Limits of Antitrust
Do the New HMGs Move From Cheap Talk to Commitment on Out-of-Market Efficiencies?
One of the primary concerns with the Proposed HMGs was that the new approach would lead to small relevant markets in order to better reflect the Agencies’ views that the traditional approach understated the importance of competition between close substitutes. I highlighted one analytical concern with this approach in a previous blog post: The real ... Do the New HMGs Move From Cheap Talk to Commitment on Out-of-Market Efficiencies?
Apple and Amazon E-Book Most Favored Nation Clauses
Connecticut AG Richard Blumenthal has reportedly contacted Apple and Amazon concerning their pricing arrangements with publishers (WSJ, CNN): Mr. Blumenthal said he has sent letters to Amazon and Apple asking them to “meet with his office” to address his concerns that agreements in place may restrict rivals from offering cheaper e-books. For instance, he said, ... Apple and Amazon E-Book Most Favored Nation Clauses
Solving Shelf Space Incentive Conflicts With Vertical Integration and By Contract in the Soda Market
There is a nice example in the WSJ concerning the economics of vertical contractual arrangements. I’ve noted previously the apparent trend in the soda industry toward vertical integration and the link to the economics of promotional shelf space. In particular, incentive conflicts between manufacturers and retailers of differentiated products over the use of promotional shelf ... Solving Shelf Space Incentive Conflicts With Vertical Integration and By Contract in the Soda Market
Two Submissions to the Horizontal Merger Guidelines Review Project
This week, I submitted two comments to the Horizontal Merger Guidelines Revision Project. The first, submitted with a group of economists focusing on the use of price/cost margins in merger analysis. The submission lays out the basic relationship between margins and elasticities that flows from the profit-maximization assumption, and then discusses several of the factors ... Two Submissions to the Horizontal Merger Guidelines Review Project
Google's Very Public Efficiencies Defense
Here is Google’s attempt to measure its the economic impact of Google search and adwords, adsense and its Google grants programs. Some media coverage (including a critique of the calculations) here. The total? $54 billion. The report includes state-by-state breakdowns. Not exactly a made-for-litigation antitrust expert report, but I’m sure a few copies have been ... Google's Very Public Efficiencies Defense
Judge Sullivan and the UPP: Much Ado About Nothing or Articulating the Real Problem with the New HMGs?
Much has been made of Judge Sullivan’s recent decision in City of New York v. Group Health Incorporated and its implications for the UPP test and market definition in merger cases under Section 7 of the Clayton Act. Given the 2010 Proposed Horizontal Merger Guidelines’ (2010 HMGs) shift toward diversion ratios and margins and away ... Judge Sullivan and the UPP: Much Ado About Nothing or Articulating the Real Problem with the New HMGs?
Proposed Merger Guidelines Released
The FTC/ DOJ have released the new proposed horizontal merger guidelines. The public comment period with the Commission ends May 20th. There is a lot to evaluate here. On a quick read through, here are a few of my noted as either changes or interesting as I went through: “Market definition is not an end ... Proposed Merger Guidelines Released
Assessing the claims that the Google-AdMob merger will "leverage Google's dominance" and also kill kittens
News items continue to pile up suggesting that the FTC is likely to challenge Google’s acquisition of mobile application and website advertising provider, AdMob. See this recent article from the Wall Street Journal. News reports today contain this quote from an anonymous source: “The staff (at the U.S. Federal Trade Commission) believes there is a ... Assessing the claims that the Google-AdMob merger will "leverage Google's dominance" and also kill kittens
Coke, Pepsi, Product Promotion and the Efficiencies of Vertical Integration
The soda industry is trending toward vertical integration, which Coke and Pepsi acquiring their largest bottlers. From the WSJ: Coke and PepsiCo sell concentrate to bottlers, which then bottle and distribute the soft drinks in their territories. Many of these smaller bottlers are small businesses that have been run by family members for decades and ... Coke, Pepsi, Product Promotion and the Efficiencies of Vertical Integration
An Honest Question for Obamacare Supporters
A number of opponents of Obamacare, such as Wall Street Journal columnist William McGurn, have criticized the President and his people for referring to pending proposals as “health insurance reform” rather than “health care reform.” I suppose these critics think the President is engaging in a sleight of hand in an effort to minimize the ... An Honest Question for Obamacare Supporters
