Showing archive for: “Financial Regulation”
Problems with the Evidence of Anticompetitive Harm from Common Ownership
Mike Sykuta and I have been blogging about our new paper responding to scholars who contend that institutional investors’ common ownership of small stakes in competing firms significantly reduces market competition and should be restricted. (FTC Commissioner Noah Phillips cited the paper yesterday in his excellent prepared remarks on common ownership.) Mike first described the ... Problems with the Evidence of Anticompetitive Harm from Common Ownership
Problems With the Theory of Anticompetitive Harm from Common Ownership
Mike Sykuta and I have been blogging about our recent paper on so-called “common ownership” by institutional investors like Vanguard, BlackRock, Fidelity, and State Street. Following my initial post, Mike described the purported problem with institutional investors’ common ownership of small stakes in competing firms. As Mike explained, the theory of anticompetitive harm holds that small-stakes ... Problems With the Theory of Anticompetitive Harm from Common Ownership
The Case for Doing Nothing: The ‘Problem’ of Common Ownership
As Thom previously posted, he and I have a new paper explaining The Case for Doing Nothing About Common Ownership of Small Stakes in Competing Firms. Our paper is a response to cries from the likes of Einer Elhauge and of Eric Posner, Fiona Scott Morton, and Glen Weyl, who have called for various types ... The Case for Doing Nothing: The ‘Problem’ of Common Ownership
New Report: Canadian Interchange Fee Caps Would Hurt Consumers
Canada’s large merchants have called on the government to impose price controls on interchange fees, claiming this would benefit not only merchants but also consumers. But experience elsewhere contradicts this claim. In a recently released Macdonald Laurier Institute report, Julian Morris, Geoffrey A. Manne, Ian Lee, and Todd J. Zywicki detail how price controls on ... New Report: Canadian Interchange Fee Caps Would Hurt Consumers
Inter Partes Review Jeopardizes the Social Contract between Drug Makers and Patients
It’s been six weeks since drug maker Allergan announced that it had assigned to the Saint Regis Mohawk Tribe the patents on Restasis, an Allergan drug challenged both in IPR proceedings and in Hatch-Waxman proceedings in federal district court. The unorthodox agreement was intended to shield the patents from IPR proceedings (and thus restrict the ... Inter Partes Review Jeopardizes the Social Contract between Drug Makers and Patients
IMG-Learfield: An antitrust reality check on two-sided market mergers
Yesterday Learfield and IMG College inked their recently announced merger. Since the negotiations were made public several weeks ago, the deal has garnered some wild speculation and potentially negative attention. Now that the merger has been announced, it’s bound to attract even more attention and conjecture. On the field of competition, however, the market realities ... IMG-Learfield: An antitrust reality check on two-sided market mergers
The Allergan-Mohawk deal: An ingenious strategy to avoid an unbalanced IPR process
Last Friday, drug maker Allergan and the Saint Regis Mohawk Tribe announced that they had reached an agreement under which Allergan assigned the patents on its top-selling drug Restasis to the tribe and, in return, Allergan was given the exclusive license on the Restasis patents so that it can continue producing and distributing the drug. ... The Allergan-Mohawk deal: An ingenious strategy to avoid an unbalanced IPR process
Democratic Party “Better Deal” Antitrust Proposals Would be a “Worse Deal” for the American Economy and Consumers
On July 24, as part of their newly-announced “Better Deal” campaign, congressional Democrats released an antitrust proposal (“Better Deal Antitrust Proposal” or BDAP) entitled “Cracking Down on Corporate Monopolies and the Abuse of Economic and Political Power.” Unfortunately, this antitrust tract is really an “Old Deal” screed that rehashes long-discredited ideas about “bigness is badness” ... Democratic Party “Better Deal” Antitrust Proposals Would be a “Worse Deal” for the American Economy and Consumers
When Should the Government Provide Public Goods?
My new book, How to Regulate: A Guide for Policymakers, will be published in a few weeks. A while back, I promised a series of posts on the book’s key chapters. I posted an overview of the book and a description of the book’s chapter on externalities. I then got busy on another writing project ... When Should the Government Provide Public Goods?
Congressional Review Act Should Be Used to Strike Down Ill-Advised CFPB Arbitration Rule
On July 10, the Consumer Financial Protection Bureau (CFPB) announced a new rule to ban financial service providers, such as banks or credit card companies, from using mandatory arbitration clauses to deny consumers the opportunity to participate in a class action (“Arbitration Rule”). The Arbitration Rule’s summary explains: First, the final rule prohibits covered providers ... Congressional Review Act Should Be Used to Strike Down Ill-Advised CFPB Arbitration Rule
New ICLE study finds the Durbin Amendment still harms poorer Americans and small businesses
Today, the International Center for Law & Economics (ICLE) released a study updating our 2014 analysis of the economic effects of the Durbin Amendment to the Dodd-Frank Act. The new paper, Unreasonable and Disproportionate: How the Durbin Amendment Harms Poorer Americans and Small Businesses, by ICLE scholars, Todd J. Zywicki, Geoffrey A. Manne, and Julian ... New ICLE study finds the Durbin Amendment still harms poorer Americans and small businesses
Common Ownership by Institutional Investors: Beware Antitrust Overreach
The antitrust industry never sleeps – it is always hard at work seeking new business practices to scrutinize, eagerly latching on to any novel theory of anticompetitive harm that holds out the prospect of future investigations. In so doing, antitrust entrepreneurs choose, of course, to ignore Nobel Laureate Ronald Coase’s warning that “[i]f an economist ... Common Ownership by Institutional Investors: Beware Antitrust Overreach
