Showing 5 of 41 Publications in CFPB

A “Plain Vanilla” Proposal for Behavioral Law and Economics

TOTM I’ve been, for some time, a behavioral law and economics skeptic.  Sometimes this position is confused with skepticism about behavioral economics, as in — believing . . .

I’ve been, for some time, a behavioral law and economics skeptic.  Sometimes this position is confused with skepticism about behavioral economics, as in — believing that behavioral economics itself offers nothing useful to economic science or is illegitimate in some way.   That’s not true.  Now, I have some qualms about the explanatory power of some of the behavioral models as well — but the primary critique (in my view) has always been the threat that behavioral economics will be used as the intellectual cover for regulation judged by the preferences of the regulators rather than rigorous economic analysis of any sort.

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Antitrust & Consumer Protection

Nudging Antitrust? Commissioner Rosch’s Weak Case for “Behavioral Antitrust” (Part 1)

TOTM 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 . . .

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 regime based on behavioral economics.  There are plenty of antitrust scholars who’ve begun to make this case, with perhaps Professor Stucke having been the most prolific on this score.  And behavioral economics has provided the intellectual support, or perhaps cover depending on who you ask, for the recent regulatory expansion involving consumer credit.  The issue is also getting more and more attention.  Competition Policy International recently published a symposium issue dedicated to the topic.

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Antitrust & Consumer Protection

Who Will Run the New CFPB and How Will They Run It?

TOTM The new Consumer Financial Protection Bureau is right around the corner  Talk has now turned to who might run the powerful agency and what it . . .

The new Consumer Financial Protection Bureau is right around the corner  Talk has now turned to who might run the powerful agency and what it might do.  The WSJ names names…

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Financial Regulation & Corporate Governance

Judge Posner on Financial Reform and the Consumer Financial Protection Bureau

TOTM Judge Posner offers his thoughts on financial reform, mostly negative, at Bloomberg.   The thrust of the essay is that the financial regulation produced by the . . .

Judge Posner offers his thoughts on financial reform, mostly negative, at Bloomberg.   The thrust of the essay is that the financial regulation produced by the political process has, at best, a poor nexus to the actual causes of the economic crisis, and that what we are left with is primary reorganization and reshuffling to look busy.  Judge Posner discusses the political advantages to reshuffling as a response to government failure…

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Financial Regulation & Corporate Governance

The Dangers of Letting Someone Else Decide

Popular Media I don’t think I suffer from any phobias (heck, I’m not even afraid of clowns, though some would argue that suggests a lack of prudence . . .

I don’t think I suffer from any phobias (heck, I’m not even afraid of clowns, though some would argue that suggests a lack of prudence on my part).  I’m not sure Professors Whitman and Rizzo do either, despite Professor Thaler’s gentle ribbing.  While Whitman can surely defend himself, I can’t resist pointing out that Thaler’s example of Prohibition is illustrative of Whitman’s point.

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Financial Regulation & Corporate Governance