Industrial Organization Commons^™

The Innovation Commons, Herbert J. Hovenkamp

All Faculty Scholarship

This book of CASES AND MATERIALS ON INNOVATION AND COMPETITION POLICY is intended for educational use. The book is free for all to use subject to an open source license agreement. It differs from IP/antitrust casebooks in that it considers numerous sources of competition policy in addition to antitrust, including those that emanate from the intellectual property laws themselves, and also related issues such as the relationship between market structure and innovation, the competitive consequences of regulatory rules governing technology competition such as net neutrality and interconnection, misuse, the first sale doctrine, and the Digital Millennium Copyright Act (DMCA). Chapters …

Distributive Justice And Consumer Welfare In Antitrust, Herbert J. Hovenkamp

All Faculty Scholarship

The dominant view of antitrust policy in the United States is that it is intended to promote some version of economic welfare. More specifically, antitrust promotes allocative efficiency by ensuring that markets are as competitive as they can practicably be, and that firms do not face unreasonable roadblocks to attaining productive efficiency, which refers to both cost minimization and innovation.

The distribution concern that has dominated debates over United States antitrust policy over the last several decades is whether antitrust should adopt a “consumer welfare” principle rather than a more general neoclassical “total welfare” principle. In The Antitrust Paradox Robert …

Competition For Innovation, Herbert J. Hovenkamp

All Faculty Scholarship

Both antitrust and IP law are limited and imperfect instruments for regulating innovation. The problems include high information costs and lack of sufficient knowledge, special interest capture, and the jury trial system, to name a few. More fundamentally, antitrust law and intellectual property law have looked at markets in very different ways. Further, over the last three decades antitrust law has undergone a reformation process that has made it extremely self conscious about its goals. While the need for such reform is at least as apparent in patent and copyright law, very little true reform has actually occurred.

Antitrust has …

Desarrollo Y Acceso A Telecomunicaciones, Rodrigo Garcia-Verdu

Rodrigo Garcia-Verdu

No abstract provided.

Development Of Generic Key Performance Indicators For Pmbok® Using A 3d Project Integration Model, Craig Langston

Craig Langston

Since Martin Barnes’ so-called ‘iron triangle’ circa 1969, much debate has occurred over how best to describe the fundamental constraints that underpin project success. This paper develops a 3D project integration model for PMBOK® comprising core constraints of scope, cost, time and risk as a basis to propose six generic key performance indicators (KPIs) that articulate successful project delivery. These KPIs are defined as value, efficiency, speed, innovation, complexity and impact and can each be measured objectively as ratios of the core constraints. An overall KPI (denoted as s3/ctr) is also derived. The aim in this paper is to set …

Preponderancia: Telcel & Televisa, Víctor Pavón-Villamayor

Víctor Pavón-Villamayor

No abstract provided.

Supplementary Material To "Age Effects, Unobserved Characteristics And Hedonic Price Indexes: The Spanish Car Market In The 1990'S", Xosé-Luís Varela-Irimia

Xosé-Luís Varela-Irimia

This supplement presents all the results of the paper "Age effects, unobserved characteristics and hedonic price indexes: The Spanish car market in the 1990's".

Developing, Refining, And Validating A Survey To Measure Stereotypes And Biases That Women Face In Industry, Erin D. Webb

Masters Theses & Specialist Projects

Almost any woman who has worked in a male dominated industry has faced a gender stereotype or bias of some type. Some of these women have even developed coping mechanisms to counteract these biases and make day-to-day interactions at work tolerable. Gathering information to reveal these stereotypes and biases can pose a distinctive challenge. Many women do not want to reveal the challenges that they have faced in their careers, and the vastness of types of challenges makes asking the correct questions very difficult. Through testing, this study has developed a valid data collection instrument that can be used to …

Anticompetitive Patent Settlements And The Supreme Court's Actavis Decision, Herbert J. Hovenkamp

All Faculty Scholarship

In FTC v. Actavis the Supreme Court held that settlement of a patent infringement suit in which the patentee of a branded pharmaceutical drug pays a generic infringer to stay out of the market may be illegal under the antitrust laws. Justice Breyer's majority opinion was surprisingly broad, in two critical senses. First, he spoke with a generality that reached far beyond the pharmaceutical generic drug disputes that have provoked numerous pay-for-delay settlements.

Second was the aggressive approach that the Court chose. The obvious alternatives were the rule that prevailed in most Circuits, that any settlement is immune from antitrust …

Must-Carry En Tv Satelital, Víctor Pavón-Villamayor

Víctor Pavón-Villamayor

No abstract provided.

Tribunales Especializados En México, Víctor Pavón-Villamayor

Víctor Pavón-Villamayor

No abstract provided.

Changing Revealed Comparative Advantage Of Textile And Clothing Sector Of Pakistan: Pre And Post Quota Analysis, Nawaz Ahmad

Nawaz Ahmad

Many Asian countries have been beneficiaries of quota abolition for textile and clothing sector since 2005. After the implementation of the Agreement on Textile and Clothing (ATC) in December 2004, member countries of World Trade Organization (WTO) have quota-free trade except People’s Republic of China (PRC). It was expected that Pakistan will be beneficiaries in textile and clothing due to expected superior export performance in this sector. Therefore, this study aims estimating revealed comparative advantage (RCA) of textile and clothing sector of Pakistan at HS-2digit level and SITC-3 digit level. It reveals Pakistan has comparative advantage in textile sector and …

The Role Of Family Ties In Mitigating Moral Hazard: Firm-Level Evidence From Tamil Nadu, India, Goldie Chow

Goldie Chow

Drawing on firm-level data from the district of Coimbatore in Tamil Nadu, India, this study explores the role of family ties as a means to counteract potential moral hazard concerns. It is shown that firms will be more likely to employ family relations when faced with a higher hidden context for moral hazard. Specifically, the analysis finds that the presence of family members within the firm is higher when the firm provides general training and that firms that are more likely to do external business with family relations when it is believed that the legal system is not effective. Additionally, …

Reglas De Competencia En El Sector De Telecomunicaciones Y Radiodifusión, Víctor Pavón-Villamayor

Víctor Pavón-Villamayor

No abstract provided.

Google, Antitrust & Schumpeter, Víctor Pavón-Villamayor

Víctor Pavón-Villamayor

No abstract provided.

Innovation, Ip Rights, And Anticompetitive Exclusion, Herbert J. Hovenkamp

All Faculty Scholarship

This book of CASES AND MATERIALS ON INNOVATION AND COMPETITION POLICY is intended for educational use. The book is free for all to use subject to an open source license agreement. It considers numerous sources of competition policy in addition to antitrust, including those that emanate from the intellectual property laws themselves, and also related issues such as the relationship between market structure and innovation, the competitive consequences of regulatory rules governing technology competition such as net neutrality and interconnection, misuse, the first sale doctrine, and the Digital Millennium Copyright Act (DMCA). Chapters will be updated frequently. The author uses …

Resource Movement And The Legal System, Herbert J. Hovenkamp

All Faculty Scholarship

In "The Problem of Social Cost" Ronald Coase considered several common law disputes among neighbors whose economic activities conflicted with one another. For example, Sturges v. Bridgman was a nineteenth century nuisance case involving a pediatrician whose practice was hindered by his neighbor, a confectioner whose operation required a noisy mechanical mortar & pestle. Coase showed that if high transaction costs did not interfere, private bargaining would provide a solution which he characterized as efficient -- namely, that the right to continue would be given to the person who valued it most. For example, if the pediatrician valued the right …

La Controversial Multa A Pemex, Víctor Pavón-Villamayor

Víctor Pavón-Villamayor

No abstract provided.

China At The Crossroads, Singapore Management University

Perspectives@SMU

When villagers in Wukan village (乌坎) in Southern China protested against illegal land grabs in September 2011, it highlighted a main source of tension in China: the displacement of rural Chinese by rapid urbanisation, sometimes done illegally. The Seige of Wukan was a case in point, where local Communist Party officials had sold communally held farmland

Uganda’S Cotton And Textile Sectors: Current Production Challenges, Motivations And Effects On Development, Daniel Geiser Chell

Independent Study Project (ISP) Collection

Current policies promote value addition industries and increased cotton yields. On the ground, however, cotton production and textile industries continue to lag behind previous rates of production. The study therefore sought to understand the conditions contributing to the current economic climate of the cotton industry. Once context was established, the researcher explored factors both promoting and discouraging cotton cultivation. Finally, the research explores the developmental consequences of increasing cotton and textile production in Uganda. In order to meet the aforementioned objectives, the researcher carried out a value chain analysis of the cotton and textile industry, taking note of the policies …

Activating Actavis, Aaron Edlin, C. Scott Hemphill, Herbert J. Hovenkamp, Carl Shapiro

All Faculty Scholarship

In Federal Trade Commission v. Actavis, Inc., the Supreme Court provided fundamental guidance about how courts should handle antitrust challenges to reverse payment patent settlements. The Court came down strongly in favor of an antitrust solution to the problem, concluding that “an antitrust action is likely to prove more feasible administratively than the Eleventh Circuit believed.” At the same time, Justice Breyer’s majority opinion acknowledged that the Court did not answer every relevant question. The opinion closed by “leav[ing] to the lower courts the structuring of the present rule-of-reason antitrust litigation.”

This article is an effort to help courts and …

Privateers & Paes: Economic Harms To Competition And Innovation, Robert G. Harris

Robert G Harris

This paper addresses the problems of aggressive rent-seeking activities by patent assertion entities (PAEs), especially those involving patent thickets. It analyzes the fundamental differences in the strategic interests of practicing entities and PAEs and explains why those differences affect the conduct of PAEs and increase the opportunities for, and economic harm caused by PAEs’ rent-seeking and patent holdup. It also addresses the anticompetitive harms caused when practicing entities transfer patents to PAEs, especially those that incentivize assertion of the transferred patents against their competitors, i.e. “patent privateering.”

Institutional Advantage In Competition And Innovation Policy, Herbert J. Hovenkamp

All Faculty Scholarship

In the United States responsibility for innovation policy and competition policy are assigned to different agencies with different authority. The principal institutional enforcers of patent policy are the United States Patent and Trademark Office (USPTO), the International Trade Commission (ITC), and the federal district courts as overseen by the United States Court of Appeals for the Federal Circuit, and ultimately the Supreme Court. While competition policy is not an explicit part of patent policy, competition issues arise frequently, even when they are not seen as such.

Since early in the twentieth century antitrust courts have had to confront practices that …

Secondary-Line Differential Pricing And The Robinson-Patman Act, E. Thomas Sullivan, Herbert J. Hovenkamp, Howard A. Shelanski, Christopher R. Leslie

All Faculty Scholarship

Because it is taught infrequently, the full text of Chapter 8 of our antitrust casebook, on the Robinson-Patman Act, is now posted online and free for anyone to use. This chapter covers all issues related to secondary-line enforcement, the "cost justification," "meeting competition," and other defenses, as well as buyers' liability. Primary-line enforcement is still covered with the materials on predatory pricing in Chapter 6.

Financial Liberalization, Market Structure And Credit Penetration, Felipe Balmaceda Assoc Prof., Ronald Fischer Full Professor, Felipe Ramirez

Felipe Balmaceda

This paper shows that the effects of financial liberalization on the credit market of a small and capital constrained economy depend on the market structure of domestic banks prior to liberalization. Specifically, under perfect competition in the domestic credit market prior to liberalization, liberalization leads to lower domestic interest rates, in turn leading to increased credit penetration. However, when the initial market structure is one of imperfect competition, liberalization can lead to the exclusion of less wealthy entrepreneurs from the credit market. This provides a rationale for the mixed empirical evidence concerning the effects of liberalization on access to credit …

Regulación De Insumos Esenciales, Víctor Pavón-Villamayor

Víctor Pavón-Villamayor

No abstract provided.

Essays On Trade Costs, Supply Chain Uncertainty And Ceo Compensation, Valentina Kozlova

Doctoral Dissertations

This dissertation consists of two chapters that examine high managerial pay and supply chain uncertainty.

Chapter 1 constructs a game-theoretic model in which high CEO pay emerges as the outcome of an arms race, with each firm paying its CEO highly to protect its competitive position against rivals who also pay highly. For an arms race to emerge, highly-paid CEOs must generate idiosyncratic, privately-known internal effects on profit, and CEO pay disparities must also generate asymmetric profit differences from external effects beyond the simple differences in pay. If the distribution of internal effects satisfies a key uniformity condition, an arms …

Essays On Forward Trading, Environmental Quality And Investor Behavior, And The Wta-Wtp Disparity, Jens Schubert

Doctoral Dissertations

This dissertation consists of three essays that study (i) collusion in forward markets, (ii) investor behavior in response to ecological disasters, and (iii) the willingness to accept - willingness to pay disparity in the presence of uncertainty.

Chapter 1 reports the results of a laboratory experiment that examines the strategic effect of forward contracts on market power in infinitely repeated duopolies. Two competing effects motivate the experimental design. Allaz and Vila (1993) argue that forward markets act like additional competitors in that they increase quantity competition among firms. Conversely, Liski and Montero (2006) argue that forward contracting can facilitate collusive …

Voice Without Say: Why Capital-Managed Firms Aren’T (Genuinely) Participatory, Justin Schwartz

Justin Schwartz

Why are most capitalist enterprises of any size organized as authoritarian bureaucracies rather than incorporating genuine employee participation that would give the workers real authority? Even firms with employee participation programs leave virtually all decision-making power in the hands of management. The standard answer is that hierarchy is more economically efficient than any sort of genuine participation, so that participatory firms would be less productive and lose out to more traditional competitors. This answer is indefensible. After surveying the history, legal status, and varieties of employee participation, I examine and reject as question-begging the argument that the rarity of genuine …

Contract Enforcement: A Political Economy Model Of Legal Development, Fali Huang

Research Collection School Of Economics

In an effort to understand why the relative usage of relational and legal contracts differs across societies, this article builds a political economy model of legal development where legal quality of contract enforcement is a costly public good. It finds that legal investment tends to be too small under elite rule but too large under majority rule in comparison with the socially optimal level. Furthermore, elite rule, low legal quality, and high-income inequality may form a self-perpetuating circle that hinders economic development. In contrast to the conventional view, this article suggests that the often-observed association between heavy reliance on relational …