Showing archive for: “Law & Economics”
Licensed to Wait: The High Cost of Spectrum Delay
America’s wireless future is on hold, pending another study. Federal agencies control much of the spectrum needed to build it—and the process for opening those frequencies rewards incumbents for taking their time. Sustaining U.S. leadership in wireless technology requires more spectrum—the radio frequencies that carry wireless signals—for fifth- and sixth-generation mobile networks (5G and 6G), ... Licensed to Wait: The High Cost of Spectrum Delay
Fraud, Platforms, and the Art of Getting Ahead of Yourself
The Federal Trade Commission (FTC) wants to stop impersonation scams. Fair enough. But calling a new regulatory venture an “update” doesn’t make it one, and spotting a real problem doesn’t tell you which rules—if any—will solve it. A little more homework would help. On Sept. 24, the FTC announced an advance notice of proposed rulemaking ... Fraud, Platforms, and the Art of Getting Ahead of Yourself
The Case of the Missing Sale: The FTC’s Personalized-Pricing Blind Spot
Suppose a retailer charges $10 for a service. One customer values it at $11 and buys it. Another values it at $8 and walks away. The retailer sends the second customer a $3 coupon. She pays $7, gets something worth $8 to her, and the retailer makes a sale it otherwise would have missed. The ... The Case of the Missing Sale: The FTC’s Personalized-Pricing Blind Spot
‘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
Move Slow and Collude: The Antitrust Problem With Pacing AI
The frontier AI race’s latest safety proposal would have the leading contenders agree on how fast to run. Antitrust law has a less flattering name for that arrangement: a cartel. That is the central problem with the “pacing the frontier” plan that Anthropic CEO Dario Amodei unveiled last weekend, and that fellow AI executives Sam ... Move Slow and Collude: The Antitrust Problem With Pacing AI
Rate Expectations: Apple and the New Price Regulators
Competition policy is supposed to protect the competitive process, not do double-duty as price regulation. Yet the line between the two appears to be blurring in both a U.S. antitrust case and the European Union’s enforcement of the Digital Markets Act (DMA). On Aug. 14, after years of litigation with Epic Games, Apple submitted a ... Rate Expectations: Apple and the New Price Regulators
‘Incomplete Contracts and the Theory of Contract Design,’ by Robert Scott and George Triantis
Economists and lawyers know that almost every contract is incomplete. Contracts routinely omit or leave undefined important terms, and they rarely anticipate every circumstance that might frustrate performance. The reason is simple: It makes little sense to spend $1,000 drafting a provision that has an expected value of only $100. Parties therefore leave lower-value contingencies ... ‘Incomplete Contracts and the Theory of Contract Design,’ by Robert Scott and George Triantis
Reserve Judgment: The FTC Takes on Amazon’s Ad Auctions
The price to beat in Amazon’s advertising auctions may not have come from another advertiser at all, according to a lawsuit filed Aug. 31 by the Federal Trade Commission (FTC). In the complaint, the FTC alleges that Amazon quietly set the price itself, promising one pricing rule and using another. That allegation could support a ... Reserve Judgment: The FTC Takes on Amazon’s Ad Auctions
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
‘Deliberation as Self-Discovery and Institutions for Political Speech,’ by Catherine Hafer and Dimitri Landa
The We Are What We Read series is, in part, about what defines the field of law & economics. The field’s natural home lies in applications that are, well, economic. Hence its longstanding—and now standard—role in contracts, corporations, antitrust, torts, and other areas. For this selection, I wanted to show how law & economics can ... ‘Deliberation as Self-Discovery and Institutions for Political Speech,’ by Catherine Hafer and Dimitri Landa
Texas Wants to Check Your App Store Papers
Smartphones are no longer just phones. For kids, they are libraries, newspapers, classrooms, cameras, maps, town squares, and, yes, bottomless distraction machines. Texas Senate Bill 2420 treats access to all of it as something that should first pass through a state-mandated checkpoint. Also known as the App Store Accountability Act, SB 2420 is currently facing ... Texas Wants to Check Your App Store Papers
‘Raid or Trade? An Economic Model of Indian-White Relations’ by Terry L. Anderson & Fred S. McChesney
The traditional domain of law & economics is the courtroom, the legislature, and the administrative agency. But in their 1994 article, “Raid or Trade? An Economic Model of Indian-White Relations,” Terry Anderson and Fred McChesney took the theoretical tools developed to explain modern legal disputes and set out to settle a wider continent. When European ... ‘Raid or Trade? An Economic Model of Indian-White Relations’ by Terry L. Anderson & Fred S. McChesney
