Economics Commons^™

Markets In Ip And Antitrust, Herbert J. Hovenkamp

All Faculty Scholarship

The purpose of market definition in antitrust law is to identify a grouping of sales such that a single firm who controlled them could maintain prices for a significant time at above the competitive level. The conceptions and procedures that go into “market definition” in antitrust can be quite different from those that go into market definition in IP law. When the issue of market definition appears in IP cases, it is mainly as a query about the range over which rivalry occurs. This rivalry may or may not have much to do with a firm’s ability to charge a …

Mergers, Market Dominance And The Lundbeck Case, Herbert J. Hovenkamp

All Faculty Scholarship

In Lundbeck the Eighth Circuit affirmed a district court’s judgment that a merger involving the only two drugs approved for treating a serious heart condition in infants was lawful. Although the drugs treated the same condition they were not bioequivalents. The Eighth Circuit approved the district court’s conclusion that they had not been shown to be in the same relevant market.

Most mergers that are subject to challenge under the antitrust laws occur in markets that exhibit some degree of product differentiation. The Lundbeck case illustrates some of the problems that can arise when courts apply ideas derived from models …

The Oecd And Phases In The International Political Economy, 1961-2011, Judith Clifton, Daniel Díaz-Fuentes

Judith Clifton

In 2011, the OECD turned fifty. To provide a broad foundation for further thinking on this organization, we analyse its evolution over half a century from two perspectives: phases in the international political economy and the literature on IPE. By so doing, we uncover two paradoxes. Firstly, we find that the organization’s evolution closely mirrored major phases in the postwar international political economy until recently. However, the OECD’s long-term dependence on theWest has now become an obstacle to its efforts to adapt to the latest phase, characterised by the rise of non-Western powers. Secondly, we show that, during the OECD’s …

El Paso Economic Development System Review & Recommendations, Edward Feser

Edward J Feser

This report, commissioned by the City of El Paso, recommends that El Paso city government undertake a substantial reform of its economic development effort and that public and private sector stakeholders in the broader El Paso region mobilize to create an organizational vehicle for the kind of public‐private collaboration that is driving innovative economic development in many other major city‐regions in the United States. The analysis also calls for a stronger integration of physical, land use, and economic development planning activities in the city and region, consistent with a trend in international best practice in local and regional economic development.

Street Food Policy In A Growing Economy: A Case Study Of Street Food Vendors In Hanoi’S Old Quarter, Alexandra J. Pill

Independent Study Project (ISP) Collection

Street food vending is a global phenomenon present in both the developed and developing worlds and it is increasingly evident as countries continue to modernize, urbanize, and globalize. Street food policy is interdisciplinary in nature, incorporating economic, social, cultural, and health dimensions in order to account for urban planning, food safety, and tourism development. In Vietnam, street food is rampant, and in particular, in Hanoi’s Old Quarter, street food vendors can be spotted on every street at all times of the day. This study explores the role of street food vendors in Hanoi's Old Quarter from the vendor’s perspective. Complementing …

Public Policy Instruments In (Re)Building National Innovation Capabilities: Cases Of Nanotechnology Development In China, Russia And Brazil, Evgeny A. Klochikhin

Evgeny A. Klochikhin

In 2001 Goldman Sachs named Brazil, Russia, India and China (BRICs) the most rapidly-growing countries in the world capable of surpassing the United States, Japan and Europe as leading economies by 2050.

Nevertheless, for the last decade we have learned relatively little about the mechanisms of success and failure in these countries. All of them have huge territory and population as well as fast-growing economies that sometimes show two-digit rates of GDP growth per year and surprise the world by their increasing budgets and public spending. In the meantime, most of these countries are believed to be desperately struggling against …

Can Health Insurance Reduce School Absenteeism?, Ryan Yeung

Ryan Yeung

Enacted in 1997, the State Children’s Health Insurance Program (SCHIP) represented the largest expansion of U.S. public health care coverage since the passage of Medicare and Medicaid 32 years earlier. Although the program has recently been reauthorized, there remains a considerable lack of thorough and well-designed evaluations of the program. In this study, we use school attendance as a measure of the program’s impact. Utilizing state-level data and the use of fixed-effects regression techniques, we conclude that SCHIP has had a positive and significant effect on state average daily attendance rates, as measured by both SCHIP participation and eligibility rates. …

Tying Arrangements And Lawful Alternatives: Transaction Costs Considerations, Herbert J. Hovenkamp

All Faculty Scholarship

Tying arrangements often increase welfare by promoting product quality and protecting the supplier's goodwill in the tying product. When the tying product works effectively only with ancillary materials or accessories or services of a particular kind or quality, its supplier can assure the requisite quality of the ancillary product only by supplying that product itself. The cost savings defense and the defenses of quality control or good will are the most widely recognized and accepted tying defenses.

One characteristic of manufactured products is differentiation among the offerings of various brands. This in turn produces a need for more specialized provision …

Quasi Exclusive Dealing, Herbert J. Hovenkamp

All Faculty Scholarship

A firm's discounting policies over a single product raise concerns analogous to exclusive dealing in two situations. First, the firm may offer conditional discounts structured in such a way as to induce customers to take most of their requirements for a given product from the defendant. In addition, a firm may employ “slotting” fees or similar allowances paid by manufacturers to retailers, with the possible result that rivals have difficulty obtaining access to shelf space. Neither practice is literally "exclusive dealing," because neither involves a condition that the purchaser not deal in the goods of a rival, although they may …

Regulating And Deregulating The Public Utilities 1830–2010, Judith Clifton Dr.

Judith Clifton

History can provide invaluable insights into important issues of the economic and social regulation of utilities, and offer lessons towards future debates. But the history of utility regulation – which speaks of changing, diverse and complex experiences around the world – was, unfortunately, sidelined or marginalised when economists and policymakers enthusiastically embraced the question of how to reform the utilities from the 1970s. This paper provides an overview of the three, overarching, `waves' of utility regulation from the nineteenth century to the present, documenting how, when and why the ways in which the roles of the state, the market and …

From National Monopoly To Multinational Corporation: How Regulation Shaped The Road Towards Telecommunications Internationalisation, Judith Clifton, Daniel Díaz-Fuentes, Francisco Comín

Judith Clifton

One of the consequences of major regulatory reform of the telecommunications sector from the end of the 1970s – particularly, privatisation, liberalisation and deregulation – was the establishment of a new business environment which permitted former national telecommunications monopolies to expand abroad. From the 1990s, a number of these firms, particularly those based in Europe, joined the rankings of the world's leading multinational corporations. Their internationalisation was uneven, however: while some firms internationalised strongly, others ventured abroad much slower. This article explores how the regulatory framework within which telecommunications incumbents evolved over the long-term shaped their subsequent, uneven, paths to …

Tying Noncompetitive Goods, Herbert J. Hovenkamp

All Faculty Scholarship

Many of the classic tying cases involved tied products that were common staples such as button fasteners, canned ink, dry ice, or salt. These products were sold in competitive markets, presumably at prices very close to cost. For most of them the most likely explanations for the tie were quality control or price discrimination, both with competitively benign results in the great majority of situations. When the tied good is sold in a noncompetitive market, however, an additional consumer welfare enhancing result is likely to obtain – namely, the elimination of double marginalization, which occurs when separate sellers of complementary …

Show Me The Money: Budget Advocacy In Indonesia, International Budget Partnership

International Budget Partnership

In "Show Me the Money: Budget Advocacy in Indonesia," authors from five civil society organizations – IDEA, the Inisiatif Association, Lakpesdam NU, the Centre for Information and Regional Studies (PATTIRO), and the Indonesian Forum for Budget Transparency (FITRA) – present five case studies on their budget work to fight against corruption and improve the allocation of government resources, and five case studies from smaller organizations based in various local districts in the country.

In addition, check out the related two-page summaries that explore the impact of civil society budget work in Indonesia to improve policies and outcomes in school funding, …

Nanotechnology Policy In Russia: Can An Emerging Technology Push A Country Onto A New Development Trajectory?, Evgeny A. Klochikhin

Evgeny A. Klochikhin

In 2001 Goldman Sachs predicted that a group of emerging markets – Brazil, Russia, India and China – will surpass leading economies by 2050. Nevertheless, we seem to have studied little about the mechanisms of success and failure in these countries in the recent decade. In this paper I focus on one of these giants – Russia – which seems seriously understudied but retains important creative and science and technology potential capable of pushing the country onto a new development trajectory.

Russia sees nanotechnology as one of the major technological platforms that could help it achieve the established growth objectives. …

International Labour Migration: The Missing Link In Globalization, Piyasiri Wickramasekara

PIYASIRI WICKRAMASEKARA

The paper analyzes the linkages between globalization and international mobility of people and labour, and concludes that labour migration is the missing link in globalization. It highlights that recent trends in labour mobility across borders hardly match optimistic rhetoric on migration and development and transnationalism at the international level. This paper briefly reviews recent trends in international mobility, particularly of workers, and reviews evidence and causes of mounting barriers to mobility. It discusses the emerging areas of convergence and divergence on policy and institutional options to optimize migration of labour for the welfare of the global economy.

La Génération Perdue: Youth Unemployment In France And The Policies Behind It, Katharine L. O'Kane

Senior Honors Projects

In the 1970s, the world began moving towards free market policies. Open borders, lower taxes, and market-based economies became more prominent as centrally planned governments declined in both number and significance. In order to participate in European trade and to enhance its global position, France also moved towards decentralization. French socialists became less concerned with centralized government, yet continued to preserve their strong national desire to protect French citizens. France experienced substantial growth in its employment costs during the 1980s. By the early 1990s, France introduced labor contracts that better defined the duration of employment. These contracts pressured French companies …

Forest Biomass Utilization In The Southern United States: Resource Sustainability And Policy Impacts, Zhimei Guo

Doctoral Dissertations

As an alternative renewable source for bioenergy, forest biomass has recently drawn more attention from the U.S. government and the general public. Woody biomass policies have been adopted to encourage the new bioenergy industry. A variety of state policy incentives attempt to create a desirable legal climate and lure new firms, imposing two important questions regarding state government policies and the sustainable use of forest resources. This dissertation sheds some light on these questions.

The first paper constructs a woody biomass policy index through scoring each statute and weighting different categories of policies from the vantage point of renewable energy …

Tying And The Rule Of Reason: Understanding Leverage, Foreclosure, And Price Discrimination, Herbert J. Hovenkamp

All Faculty Scholarship

Many tying arrangements are used by firms that do not have substantial market power in either of the two markets linked together by the tie. Their function must be something other than the enlargement or perpetuation of power. A few ties do involve fairly explicit exercises of market power, but they need not be used for a different purpose than the ties imposed by more competitive firms. This paper considers firms’ use of ties to exploit whatever power they already have over the tying product. The "leverage" theory sees ties as exploiting customers as a group via higher prices, whether …

Impact Of The Economic Downturn On Local Governments In South Carolina, William Tomes

Georgia Journal of Public Policy

Across the country local government revenues have decreased while operating costs such as fuel, materials, equipment, and health insurance costs have significantly increased. In addition to reduced revenues, interest earnings for city and county government investments are low. These factors combined have created a difficult financial arena in which local governments must operate. While economists are reporting signs of economic recovery, many city and county budgets are just now feeling the full brunt of the economic downturn that began in 2008. On a daily basis, news media nationwide report local governments addressing budget deficits by cutting services, eliminating positions, or …

A Primer On Antitrust Damages, Herbert J. Hovenkamp

All Faculty Scholarship

This paper considers the theory of antitrust damages and then discusses some simple models for proving them. Antitrust damages theory begins with the premise that many practices alleged to violate the antitrust laws cause no consumer harm. Others are inefficient and have few socially redeeming virtues. Still others may simultaneously increase both the efficiency of the participants and their market power. A perfectly designed antitrust policy would exonerate the first set of practices, condemn the second set, and condemn the third set only when the social cost of the restraint exceeds its social value or they produce net harm to …

Quantification Of Harm In Private Antitrust Actions In The United States, Herbert J. Hovenkamp

All Faculty Scholarship

This paper discusses the theory and experience of United States courts concerning the quantification of harm in antitrust cases. This treatment pertains to both the social cost of antitrust violations, and to the private damage mechanisms that United States antitrust law has developed. It is submitted for the Roundtable on the Quantification of Harm to Competition by National Courts and Competition Agencies, Organization for Economic Cooperation and Development (OECD), Feb., 2011.

In a typical year more than 90% of antitrust complaints filed in the United States are by private plaintiffs rather than the federal government. Further, when the individual states …

Collective Choice, Justin Schwartz

Justin Schwartz

This short nontechnical article reviews the Arrow Impossibility Theorem and its implications for rational democratic decisionmaking. In the 1950s, economist Kenneth J. Arrow proved that no method for producing a unique social choice involving at least three choices and three actors could satisfy four seemingly obvious constraints that are practically constitutive of democratic decisionmaking. Any such method must violate such a constraint and risks leading to disturbingly irrational results such and Condorcet cycling. I explain the theorem in plain, nonmathematical language, and discuss the history, range, and prospects of avoiding what seems like a fundamental theoretical challenge to the possibility …

Innovation Cooperation: Energy Biosciences And Law, Prof. Elizabeth Burleson

Prof. Elizabeth Burleson

This Article analyzes the development and dissemination of environmentally sound technologies that can address climate change. Climate change poses catastrophic health and security risks on a global scale. Universities, individual innovators, private firms, civil society, governments, and the United Nations can unite in the common goal to address climate change. This Article recommends means by which legal, scientific, engineering, and a host of other public and private actors can bring environmentally sound innovation into widespread use to achieve sustainable development. In particular, universities can facilitate this collaboration by fostering global innovation and diffusion networks.

Structurally Unbalanced: Cyclical And Structural Deficits In Arizona, Matthew Murray, Kristin Borns, Susan Clark-Johnson, Mark Muro, Jennifer Vey, Brookings Mountain West, Morrison Institute For Public Policy

Brookings Mountain West Publications

Though the Great Recession may be officially over, all is not well in Arizona. Three years after the collapse of a massive real estate “bubble,” the deepest economic downturn in memory exposed and exacerbated one of the nation’s most profound state fiscal crises, with disturbing implications for Arizona citizens and the state’s long-term economic health. This brief takes a careful look at the Grand Canyon State’s fiscal situation, examining both Arizona’s serious cyclical budget shortfall—the one resulting from a temporary collapse of revenue due to the recession—as well as the chronic, longer-term, and massive structural imbalances that have developed largely …

Structurally Unbalanced: Cyclical And Structural Deficits In California And The Intermountain West, Matthew Murray, Susan Clark-Johnson, Mark Muro, Jennifer Vey, Brookings Mountain West, Morrison Institute For Public Policy

Brookings Mountain West Publications

Though the Great Recession may be officially over, economic recovery is slow and tentative, particularly in California and much of the Intermountain West. Among other challenges, the protracted downturn in these states has exposed and aggravated a huge public-sector fiscal crisis—with disconcerting implications for citizens and states’ long-term economic health. This brief takes a careful look at the fiscal situation in Arizona, California, Colorado, and Nevada, examining both their serious cyclical budget shortfalls—those resulting from the recession and its aftermath—as well as the critical longer-term structural imbalances between revenues and expenditures that have developed in Arizona, California, and, to a …

Economic Development Analysis & Action Plan: Camden, Maine, Charles S. Colgan

Regional Studies

This report addresses the issues of economic growth in the context of the Town of Camden, one of the 20 communities examined in the Gateway 1 planning process. The intention of this Commercial Development Inventory and Economic Development Analysis is to guide the Economic Development efforts of Camden for the next 5-10 years within the context of the Gateway 1 initiative.

The Political Economy Of Fraud On The Market, William W. Bratton, Michael L. Wachter

All Faculty Scholarship

No abstract provided.

Introduction To Creation Without Restraint: Promoting Liberty And Rivalry In Innovation, Christina Bohannan, Herbert J. Hovenkamp

All Faculty Scholarship

This document contains the table of contents, introduction, and a brief description of Christina Bohannan & Herbert Hovenkamp, Creation without Restraint: Promoting Liberty and Rivalry in Innovation (Oxford 2011).

Promoting rivalry in innovation requires a fusion of legal policies drawn from patent, copyright, and antitrust law, as well as economics and other disciplines. Creation Without Restraint looks first at the relationship between markets and innovation, noting that innovation occurs most in moderately competitive markets and that small actors are more likely to be truly creative innovators. Then we examine the problem of connected and complementary relationships, a dominant feature of …

Promoting The Buildout Of New Networks Vs. Compelling Access To The Monopoly Loop: A Clash Of Regulatory Paradigms, Christopher S. Yoo

All Faculty Scholarship

No abstract provided.