Showing archive for: “Multisided Markets”
Amazon vs. Macmillan: It's all about control
The Amazon vs. Macmillan controversy has been beaten to a pulp in the blogosphere. See Megan McArdle, John Scalzi, Joshua Gans, Virginia Postrel, Lynne Kiesling, Lynne Kielsing and Lynne Kiesling, among others. Pulp or no (get it? It’s a book/e-book pun), I haven’t seen anyone hit squarely on what I think is the crux of ... Amazon vs. Macmillan: It's all about control
The Institutional Dynamic: Understand First, Act Second—If At All
I have now had a chance to review the excellent posts on the second day, all of which have a common flavor. They expand the universe of relative considerations that need to be taken into account to decide whether imposing caps on interchange fees enhances or reduces overall social welfare. The narrow perspective on this ... The Institutional Dynamic: Understand First, Act Second—If At All
Merchant Collusion as an Antitrust Remedy
In my first post I discussed the potential for interchange legislation from a consumer protection perspective, that is, would the combination of disclosure requirements coupled with a reduction of interchange fees be likely to improve consumer welfare. I concluded that from the consumer protection perspective, the case for interchange legislation was weak. I noted that ... Merchant Collusion as an Antitrust Remedy
Allocating the Costs of Fraud
Geoffrey A. Manne is Executive Director of the International Center for Law & Economics and a Lecturer in Law at Lewis & Clark Law School. I take to heart Jim’s claim that fraud is too-little discussed in this realm given its cost, and thus I’ll try my hand at it. Every discussion of the industrial ... Allocating the Costs of Fraud
Interchange Legislation as Counterproductive Consumer Protection Regulation
I want to begin with the premise that the legislation pending in Congress, in whatever form is ultimately adopted, will be successful in reducing interchange fees before turning to the question of whether such a reduction can be justified. Proponents of interchange fee legislation offer two basic defenses of the legislation. The first is as a ... Interchange Legislation as Counterproductive Consumer Protection Regulation
Seven Truths About Regulating Interchange
Interchange fees on payment cards are obviously a hot topic in the United States, but also in Europe and in many other countries around the world. The report on interchange fees released last month by the US Government Accounting Office (GAO) notes that more than 30 countries have intervened or are considering intervening in the ... Seven Truths About Regulating Interchange
Why Now? The Faulty Economics of Credit Card Reform
About four years ago, I worked for Visa in opposing the opposed limitations on interchange fees that the Australian government was about to impose on the credit card industry. The situation there, like the situation in the United States, seemed hardly propitious for reform. The use of credit cards was rapidly expanding, and the rate ... Why Now? The Faulty Economics of Credit Card Reform
Response to Steve Salop on credit card antitrust
Steve’s post responding to me and Josh on antitrust exemptions and buyer cartels raised a number of interesting issues. A few points in response: 1. Constantine’s book is quite a measured look at the case (not). I love how he risked everything — everything! — for the case. He and the country’s other contingency fee ... Response to Steve Salop on credit card antitrust
Evans and Schmalensee Webinar on Two-Sided Markets
Here is a link to the latest Competition Policy International Webinar series on antitrust issues in two-sided markets by David Evans and Richard Schmalansee. Here is the course description: It is now widely recognized by antitrust and economic scholars that analyzing competitive practices such as mergers and abuse of dominance in two-sided industries requires special ... Evans and Schmalensee Webinar on Two-Sided Markets
The Market for DRM
Everyone is talking about Steve Jobs’ open letter on DRM,”Thoughts on Music,” including, best among all of them, my colleague, Josh.  Among many others, see excellent entries from Jim DeLong, Randy Picker and Mike Madison. Frank Pasquale weighs in with a predictable post about how wonderful the world would be if we just regulated his (perfect) vision of ... The Market for DRM
