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Radiohead revisited

TOTM I started writing this as a comment to Josh’s last post, but it got so long I figured I’d make a post out of it.  . . .

I started writing this as a comment to Josh’s last post, but it got so long I figured I’d make a post out of it.  Thanks for the inspiration, Josh.

I really hope Radiohead releases the data on its little experiment!  My prediction: They will receive an average price of $2 and a median price of $0.

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Financial Regulation & Corporate Governance

Behavioral Law and Economics of Contracts

TOTM After receiving the page proofs last week, I’m posting “Behavioral Law and Economics, Paternalism, and Consumer Contracts: An Empirical Perspective” to SSRN. I wrote this . . .

After receiving the page proofs last week, I’m posting “Behavioral Law and Economics, Paternalism, and Consumer Contracts: An Empirical Perspective” to SSRN. I wrote this paper for last year’s NYU Journal of Law & Liberty Symposium on Behavioral Economics™ Challenge to the Classical Liberal Program. The basic idea of the paper is an evaluation of the empirical evidence concerning behavioral and neoclassical theoretical predictions in a few settings where behavioral anomalies are frequently argued to justify paternalistic measures: credit cards, standard form contracts, and shelf space contracts.

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Financial Regulation & Corporate Governance

The Elusive Profitability of Voluntary Pricing

TOTM WSJ has a fascinating story this morning about a group of restaurants in Utah, Washington, Colorado and other places adopting a completely voluntary pricing system. . . .

WSJ has a fascinating story this morning about a group of restaurants in Utah, Washington, Colorado and other places adopting a completely voluntary pricing system. No registers. No prices. No “suggested” prices and no tips. The business model is essentially to provide food and allow customers to put whatever they want in a lock box at the front of the store. This is similar to the former economist turned Bagel Man in Freakonomics who delivered bagels to DC area offices on a quasi-honor system.

Read the full piece here. 

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Antitrust & Consumer Protection

Warren on Rationality, Choice, and Regulation in the Credit Card Market

TOTM 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 . . .

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 annual fee.

Read the full piece here.

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Financial Regulation & Corporate Governance