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Toward A Per Se Rule Against Price Gouging, Ramsi Woodcock
Toward A Per Se Rule Against Price Gouging, Ramsi Woodcock
Law Faculty Scholarly Articles
Price gouging is the use of high prices to ration access to a good in unexpectedly short supply. Because sellers can always recoup their costs by choosing not to ration with price and instead allowing the good to sell out, price gouging harms consumers: it transfers wealth from consumers to firms unnecessarily. This harm to consumers could violate the antitrust laws in two ways. First, it could serve as the basis for a per se rule against algorithmic price gouging — surge pricing — because the superhuman speeds with which surge pricing algorithms respond to shortages effectively shorten the period …
The Antitrust Case For Consumer Primacy In Corporate Governance, Ramsi Woodcock
The Antitrust Case For Consumer Primacy In Corporate Governance, Ramsi Woodcock
Law Faculty Scholarly Articles
Consumers have been left out of the great debate over the mission of the firm, in which advocates of shareholder value maximization face off against advocates of corporate social responsibility, who would allow management leeway to allocate profits to workers and other non-shareholder insiders of the firm. The consumer welfare standard adopted by antitrust law in the 1970s requires that the firm allocate its profits neither to shareholders nor to workers or other firm insiders. Instead, the standard requires that firms strive to have no profits at all, by charging the lowest possible prices for the best quality products. Such …
The Efficient Queue And The Case Against Dynamic Pricing, Ramsi Woodcock
The Efficient Queue And The Case Against Dynamic Pricing, Ramsi Woodcock
Law Faculty Scholarly Articles
Surge pricing—using data and algorithms to raise prices in response to unexpected increases in demand—has spread across the economy in recent years, from Amazon, to Disney World, to commuter highways, not to mention Uber, which is infamous for surge pricing rides. Companies claim that surge pricing equilibrates supply and demand, but that is impossible, at least in the short run when demand unexpectedly outstrips supply. What surge pricing really does is to ration existing supplies based on ability to pay. That is both distributively unjust and potentially inefficient. It is also anticompetitive in the sense that it reduces the power …
Digital Monopoly Without Regret, Ramsi Woodcock
Digital Monopoly Without Regret, Ramsi Woodcock
Law Faculty Scholarly Articles
Attacks on Amazon, Google, and Facebook have tended to ignore a key lesson of the theory of monopolistic competition: that big is not always bad. A monopolist grows large because consumers prefer the firm’s products. The only question for the antitrust laws is whether consumers prefer the monopolist’s products because the monopolist has improved its products relative to those of competitors, or because the monopolist has degraded the products of competitors without improving its own. Only product-degrading conduct is socially harmful and violative of the antitrust laws. Although a complete accounting of conduct by Amazon, Google or Facebook is not …