Showing archive for: “Microeconomics: Search; Learning; Information Costs & Specific Knowledge; Expectation & Speculation”
“Protecting” Consumers from the Truth About the Cost of Government
A new rule kicks in today requiring airlines to include all taxes and mandatory fees in their advertised fares. The rule, part of a broader “passengers’ bill of rights”-type regulation promulgated by the Department of Transportation, is being sold as a proconsumer mandate: It purportedly protects consumers from the sticker shock that results when they ... “Protecting” Consumers from the Truth About the Cost of Government
Planet Money on Kittens, Keynes, and the Stock Market
Prompted by this post at Cafe Hayek, I recently participated in a web experiment sponsored by NPR’s Planet Money. I was asked to watch three short animal videos and vote for the animal I found cutest. The videos were all pretty cute. One featured a polar bear cub sliding along the ice with its mother. Another featured a loris ... Planet Money on Kittens, Keynes, and the Stock Market
Investor-Protective Analysis or Illegal Insider Trading?
One problem with a group blog is that you don’t always know what your co-bloggers are writing while you’re drafting a post. I drafted the following post without realizing that Larry (and Steve Bainbridge) had already gone to town on the matter — in more detail than I, not surprisingly. In any event, I’m posting ... Investor-Protective Analysis or Illegal Insider Trading?
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
More on Elizabeth Warren on Theory and Interpreting Data
With all the talk about the CFPB, Elizabeth Warren has been in the news lately. The blogs too. Most of the discussion has been about whether or not Timothy Geithner is a friend or foe to the Democrats’ preferred option of getting Warren nominated as the first chief of the CFPB. Today, Megan McArdle started ... More on Elizabeth Warren on Theory and Interpreting Data
Nudging Antitrust? Commissioner Rosch’s Weak Case for “Behavioral Antitrust” (Part 1)
Increasingly, the notion that updating antitrust policy with the insights of behavioral economics would significantly improve matters for consumers. Others have called for more major surgery, favoring an outright rejection of the current economic foundation of antitrust policy — and especially the portions of the foundation “Made in Chicago” — in favor of a new ... Nudging Antitrust? Commissioner Rosch’s Weak Case for “Behavioral Antitrust” (Part 1)
Revisiting Two Classics as the New Semester Begins
Last Friday was the first day of my Business Organizations class. We began with two articles that have profoundly influenced my thinking about the world in general and the business world in particular. To inaugurate the new semester, I thought I’d take a moment and pay tribute to the insights in those articles (and solicit ... Revisiting Two Classics as the New Semester Begins
Warren on Rationality, Choice, and Regulation in the Credit Card Market
Elizabeth Warren (Credit Slips) points to an interesting empirical study by Agarwal, Liu, Souleses, and Chomsisengphet (“ALSC”) which examines consumer credit card selection in a natural experiment setting in which a card company offers two cards to consumers: (1) a high interest rate, no annual fee card and (2) a low rate card with an ... Warren on Rationality, Choice, and Regulation in the Credit Card Market
On rigged(?) markets, casinos and Steve Bainbridge
Greetings loyal fans (i.e., “hi mom”) (actually, I’ve made this gag before, and so I think it’s time to set the record straight:  My mom has almost certainly — nay, certainly — never, ever read this blog. I’m pretty sure she has no idea what a blog is at all. She may not even be ... On rigged(?) markets, casinos and Steve Bainbridge
Henry Manne on Behavioral Finance & Insider Trading
When Henry Manne writes about insider trading, as he does this week in the WSJ op-ed, one can be sure that it is worth reading. The op-ed, which is the first installment of a two part series, offers two central points: (1) the behavioral finance literature does not support the regulation of insider trading, but ... Henry Manne on Behavioral Finance & Insider Trading
Making markets seem thicker
The Internet (read: inexpensive information dissemination) comes to the notoriously informationally-challenged housing market. The WSJ reports on a new website, zillow.com, which, as the WSJ says, uses data such as tax records, sales history and the actual prices of “comparables” — homes in your area that are similar to yours — to come up with ... Making markets seem thicker
