Law and Economics Commons^™

Ai, Antitrust, And The Marketplace Of Ideas, Maurice E. Stucke

Fordham Law Review

No abstract provided.

The Revival Of Section 5: A Return To The Ftc’S Roots In A Time Of Democratic Crisis, Shaoul Sussman

Fordham Law Review

No abstract provided.

The Nondiscrimination Principle, Zephyr Teachout

Fordham Law Review

No abstract provided.

Why Capitalism Needs Democracy And Democracy Needs Capitalism, Luigi Zingales

Fordham Law Review

No abstract provided.

U.S. Trade Law And Policy At A Crossroads, John K. Veroneau

Maine Law Review

The past decade has witnessed significant changes in U.S. international trade policy. In his first presidential term, Donald J. Trump moved the United States away from long-standing policies of lowering trade barriers to facilitate global commerce and replaced them with a more restrictive version not seen since the early twentieth century. President Trump's more trade-restrictive policies were largely extended by his successor, President Joseph R. Biden. The first year of President Trump's second term has indicated a strong desire to restrict imports further in an attempt to create U.S. manufacturing jobs and reduce reliance on Chinese imports. This Article seeks …

Corporate Governance As Bloodsport, Jeremy Kidd, George A. Mocsary

Pepperdine Law Review

The modern Environmental, Social, and Governance (ESG) movement promotes diversion of corporate assets from shareholders to “stakeholders.” This is done in the name of a corporate duty to society. But “successful” ESG efforts threaten the success of the corporate form by inviting rent-seeking. This conflict between ESG principles and established theories and norms of corporate law is difficult to resolve because corporate law lacks the tools needed to understand the type of collective decision-making that occurs in the corporate setting. This Article is the first to apply public choice economics—the economic study of collective decision-making—to corporate decision-making to identify the …

The Business Of Ai-Producing Startups: Evidence From A Worldwide Survey, James Bessen, Stephen Michael Impink, Robert Seamans

Faculty Scholarship

We report results from a multi-year, worldwide survey of artificial intelligence (AI)-producing startups to describe the types of technologies, frameworks, data protection, and partnerships nascent firms use to develop their AI products. Analyses of our survey findings also inform how startups gather the resources to commercialize their AI applications in alignment with their entrepreneurial strategies, address competitive barriers, and respond to regulations. These data provide initial evidence of the perceived impact of these products on their customers’ tasks and industries, suggesting that these firms’ AI products not only reduce labor costs but augment human capabilities.

The Bankruptcy Revolving Door, Belisa Pang

Articles

The American consumer bankruptcy system is a costly regime with profound societal implications. Between 2008 and 2023, consumers filed 13.8 million bankruptcy cases across the ninety-four federal bankruptcy districts in the United States, generating over $4 billion in court filing fees alone. When accounting for attorney fees, trustee expenses, creditor costs, and broader economic externalities—such as increased interest rates borne by other consumers—the total financial impact easily reaches tens of billions, if not hundreds of billions, of dollars.

Against that backdrop, this study uncovers a startling phenomenon: nearly 46% of the consumers who filed bankruptcy in 2023 were repeat filers, …

Negligent Hiring: Recidivism And Employment With A Criminal Record, Benjamin Pyle

Northwestern University Law Review

This Article tackles a difficult legal and policy challenge— reducing the impact of criminal records on job applicants’ chances in a manner that does not spur more discrimination—by looking at how another area of law, tort liability, impacts employers’ decision-making. It uses theoretical and empirical methods to study the most common reason employers report being reluctant to hire workers with a criminal record: legal liability generated by the tort of negligent hiring. While the purpose of the tort is ostensibly to protect and make whole those harmed when an employee misbehaves in a foreseeable manner, I show that, in practice, …

A Giving Tree Approach: Balancing Transparency And The Deliberative Process In Judicial Review, Anteo W. Chevere

Villanova Environmental Law Journal (1991 - )

No abstract provided.

Inheriting The Mess: How Cercla Successor Liability Shapes The Landscape For Asset Purchase Deals, Liam N. Hudson

Villanova Environmental Law Journal (1991 - )

No abstract provided.

Reverse Breakup Fees And Antitrust Approval, Albert H. Choi, Abraham L. Wickelgren

Law & Economics Working Papers

The paper examines the antitrust implications of use of reverse breakup (termination) fees in mergers. By promising to pay a reverse breakup fee to the target if the proposed merger does not get the necessary antitrust approval, the acquirer can signal to the antitrust authority that the merger is more likely to be pro-competitive. A large reverse breakup fee can also function as a commitment device by the acquirer to spend more resources in case the merger is challenged by the antitrust authority. While the first, signaling function is efficiency enhancing, the second, commitment function can lead to an efficiency …

Enforcing The Community Reinvestment Act, Jeremy C. Kress, Jeffery Y. Zhang

Law & Economics Working Papers

Nearly fifty years after the Community Reinvestment Act of 1977 (CRA) required banks to serve low- and moderate-income (LMI) areas, the systematic exclusion of disadvantaged communities from the mainstream financial system persists. This Article identifies a novel explanation for the CRA's limited impact: its enforcement mechanisms are ineffective.The CRA operates through two enforcement channels. Regulators must (1) consider a bank's CRA record when the bank seeks permission to merge or expand, and (2) publish periodic assessments of each bank's CRA performance. Using twenty years of CRA data, we show that neither enforcement mechanism works as intended. Banks strategically increase CRA …

Winging It: Convergence, Convivencia, And Belonging Of Latina Lawyers, Verónica C. Gonzales

Fordham Law Review

No abstract provided.

Law And The Self-Coordinating Market Idea, Sanjukta Paul

Articles

Much of the focus of the live Symposium was on comparing existing scholarship associated with two intellectual communities. I have no objection to that enterprise in the abstract, though I think it is a bit premature where law and political economy (LPE) is concerned and sets up an apples-to-oranges comparison to the decades-old streams of work and thinking in law and economics (L&E). But I would rather use the privilege of the space in this written Symposium to sketch what I believe is the ultimate substantive nub of contestation in this conversation about the core subject matter of “the economy” …

Inequality As Market Failure, Erick J. Sam

William & Mary Bill of Rights Journal

This Article explores economic, philosophical, and legal relationships between economic inequality and market failure, and it draws on these linkages to develop an innovative normative justification and alternative constitutional basis for a levy on wealth.

The Article’s central analytic result is that several general mechanisms responsible for common market failures can also systematically produce economic inequalities whenever preferences against extreme inequality are fairly widespread. Because these mechanisms satisfy both the ‘process-based’ and ‘outcome-based’ criteria of market failure, redistributive transfers designed to reduce these inequalities would be normatively justified under the widely accepted market failure theory of government action. On this …

Sanctioning Negligent Bankers, Kyle D. Logue, Robert Will Thomas, Jeffery Y. Zhang

Articles

Over just one week in 2023, depositor runs at a few U.S. banks threatened to trigger a worldwide banking crisis. Afterwards, the United States suffered three of the biggest bank failures in the nation’s history; in Europe, Credit Suisse became the largest financial institution to fail since the 2007-2008 Global Financial Crisis. Stunned by this lightning-fast panic, lawmakers, regulators, and academics have called for significant changes to the U.S. financial regulatory framework. Leading among these proposals are calls to improve supervisory oversight of banks, to tighten existing regulations on banks, and to increase deposit insurance limits. But these proposals alone …

Training To The Tech: Fostering The Ethical Adaptation To And Adoption Of Emerging Technologies In The Practice Of Law, Raymond H, Brescia

Fordham Law Review

No abstract provided.

Copyrighting Nature, Cathay Y. N. Smith -- Professor Of Law

Vanderbilt Law Review

This Article introduces a "work of nature" doctrine for copyright law. In 1903, the U.S. Supreme Court established the principle in copyright law that, while anyone can copy the original source of a copyrighted work, they cannot copy an author's copy of the original source. A century later, the U.S. Court of Appeals for the Ninth Circuit hinted at a "work of nature" exception, suggesting that even if copying the copy is restricted, copying elements of expression that nature displays for all observers is permissible. U.S. patent law excludes products of nature from protection, but this Article is the first …

Opting Out Of Court? Reputation And Informal Norms In Private Equity, Kobi Kastiel Professor Of Law, Yaron Nili Professor Of Law

Vanderbilt Law Review

Private equity, an industry characterized by high-stake investments and complex contractual arrangements, operates almost entirely outside of courts. Despite the substantial financial stakes involved--billions of dollars locked in for years--and the potential for fiduciary conflicts, litigation between limited partners ("LPs") and general partners ("GPs") who manage the investment is exceptionally rare. In stark contrast to public markets, where shareholder litigation plays a prominent role in deterring misconduct and shaping corporate norms, the private equity world is largely defined by its absence. The puzzle, then, is this: In an industry where fiduciary breaches or misaligned incentives are not uncommon, why do …