Showing 9 of 472 Publications in Economics

Antitrust at the Agencies Roundup: The Supply Chain, Part Deux

TOTM For all my carping about this or that program or enforcement matter, it seems to me a very good thing that Congress passed—and President Joe . . .

For all my carping about this or that program or enforcement matter, it seems to me a very good thing that Congress passed—and President Joe Biden signed into law—the spending package that will keep much of the federal government up and running for Fiscal Year 2024 (see here for the news, and here and here for a couple of the consolidated appropriations bills just signed into law).

Read the full piece here.

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Antitrust & Consumer Protection

Antitrust at the Agencies Roundup: Supply Chains, Noncompetes, and Greedflation

TOTM The big news from the agencies may be the lawsuit filed today by the U.S. Justice Department (DOJ) and 16 states against Apple alleging monopoly . . .

The big news from the agencies may be the lawsuit filed today by the U.S. Justice Department (DOJ) and 16 states against Apple alleging monopoly maintenance in violation of Section 2 of the Sherman Act. It’s an 86-page complaint and it’s just out. I’ll write more about it next week.

Two quick observations: First, the complaint opens with an anecdote from 2010 that suggests lock-in (a hard case under antitrust law), but demonstrates nothing. Second, the anecdote is followed by a statement that “[o]ver many years, Apple has repeatedly responded to competitive threats… by making it harder or more expensive for its users and developers to leave than by making it more attractive for them to stay.” 

Read the full piece here.

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Antitrust & Consumer Protection

Ivan Png on Benchmarking

Presentations & Interviews ICLE Academic Affiliate Ivan Png produced a video with Yun Hou and Ivan Png  describing a benchmarking experiment they did with food-stalls hawkers in Singapore, . . .

ICLE Academic Affiliate Ivan Png produced a video with Yun Hou and Ivan Png  describing a benchmarking experiment they did with food-stalls hawkers in Singapore, which found that showing firm owners their relative performance increased exit among poor performers. The full video is embedded below.

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Antitrust & Consumer Protection

Rising Markups and Declining Business Dynamism: Evidence From the Industry Cross Section

Popular Media In recent decades, various measures of “business dynamism”—such as new business entry rates and gross job or worker flows—have seen significant declines in the U.S. . . .

In recent decades, various measures of “business dynamism”—such as new business entry rates and gross job or worker flows—have seen significant declines in the U.S. (figure 1, right panel). Over a similar time frame, there is evidence that an important measure of market power—the average markup—has risen significantly (figure 1, left panel; De Loecker, Eeckhout, and Unger 2020). A natural question is whether these patterns are related.

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Antitrust & Consumer Protection

Has Law Become Stagnant?

Popular Media My last post provided an overview of my draft article The Cost of Justice at the Dawn of AI and explained the basic logic of Baumol’s cost disease for . . .

My last post provided an overview of my draft article The Cost of Justice at the Dawn of AI and explained the basic logic of Baumol’s cost disease for the practice of law. Just as in any other market, if the productivity of lawyers increases at a slower rate than the rest of the economy, legal services will become more expensive. And if a technology like artificial intelligence leads legal productivity to increase at a faster rate than the rest of the economy, then legal services will become cheaper.

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Innovation & the New Economy

Legal Productivity, the Cost Disease, and AI

Popular Media It has been a while since my last post on the Volokh Conspiracy. In 2021, I became associate dean at George Washington and did not . . .

It has been a while since my last post on the Volokh Conspiracy. In 2021, I became associate dean at George Washington and did not have time to write. Last year, I switched associate dean roles and my portfolio became smaller, so I was fortunate to have some time to return to scholarship and to complete several articles. I’ll begin my return to blogging by writing a series of posts offering shorter versions of the key arguments in a recently completed article that I have now submitted to law reviews, entitled The Cost of Justice at the Dawn of AI.

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Innovation & the New Economy

Entrepreneurial Experimentation Under Knightian Uncertainty: A Process Model

Scholarship Abstract Enrolling financiers is critical to new venture success. Building on the challenges of communicating novel and complex projects under Knightian uncertainty, we describe two . . .

Abstract

Enrolling financiers is critical to new venture success. Building on the challenges of communicating novel and complex projects under Knightian uncertainty, we describe two approaches—the opportunity discovery path vis-à-vis the effectuation/bricolage path—entrepreneurs and financiers can use to resolve alternative sources of uncertainty sequentially rather than simultaneously.

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Financial Regulation & Corporate Governance

Modeling Fee Shifting with Computational Game Theory

Scholarship Abstract While modern mathematical models of settlement bargaining in litigation generally seek to identify perfect Bayesian Nash equilibria, previous computational models have lacked game theoretic . . .

Abstract

While modern mathematical models of settlement bargaining in litigation generally seek to identify perfect Bayesian Nash equilibria, previous computational models have lacked game theoretic foundations. This article illustrates how computational game theory can complement analytical models. It identifies equilibria by applying linear programming techniques to a discretized version of a cutting-edge model of settlement bargaining. This approach makes it straightforward to alter some assumptions in the model, including that the evidence about which the parties receive signals is irrelevant to the merits and that the party with a stronger case on the merits also has better information. The computational model can also toggle easily to explore cases involving liability rather than damages and can incorporate risk aversion. A drawback of the computational model is that bargaining games may have many equilibria, complicating assessments of whether changes in equilibria associated with parameter variations are causal.

Read at SSRN.

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Innovation & the New Economy

The Case for Nominal GDP Level Targeting

Scholarship Abstract In this paper, I make the case for a nominal GDP level target in the U.S. I begin by arguing that the Federal Reserve’s . . .

Abstract

In this paper, I make the case for a nominal GDP level target in the U.S. I begin by arguing that the Federal Reserve’s current flexible average inflation targeting regime is deficient. I then argue that since a competitive monetary equilibrium is optimal, monetary policy should seek to replicate the competitive monetary model. Doing so resembles nominal GDP targeting. Finally, I offer the following practical reasons why policymakers might prefer a nominal GDP target. Nominal GDP targeting (a) does not require policymakers to determine whether current economic fluctuations are demand-driven or supply-driven nor does it require real-time estimates of the output gap, (b) automatically prevents the central bank from exacerbating supply shocks, and (c) leads to greater financial stability.

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Financial Regulation & Corporate Governance