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Fringe Law & Economics LUISS GUIDO CARLI , ROME DOTTORATO DI RICERCA IN DIRITTO ED ECONOMIA XXV CICLO FRINGE LAW & ECONOMICS GOOGLE , COMPETITION COMPETITION LAW IN ECONOMICS OF FAILURE POLICY AND THE DEVELOPING IN MOVIES AFTER THE HEGEL 'S OWL COUNTRIES . BIG CRISIS INDIA , A CASE STUDY Rosamaria Bitetti 15th January, 2013 2 | P a g e Index 1 Contents RINGRAZIAMENTI .................................................................................................... 6 GENERAL INTRODUCTION ....................................................................................... 7 SECTION I GOOGLE , COMPETITION POLICY AND THE HEGEL 'S OWL ..................................... 11 1 Can the Hegel's owl spread its wings and fly? ............................................. 12 2 The new economy: did the dusk begun to fall? ............................................ 14 3 The breeze of Behavioral antitrust ................................................................ 20 4 Google, a tale of a virtuous monopolist? ...................................................... 22 5 The trouble with dominance ......................................................................... 26 6 The trouble with abuses ................................................................................ 32 6.1 Refusal to supply ................................................................................................................... 34 6.2 Tying or bundling ................................................................................................................. 36 7 The trouble with remedies ............................................................................ 39 Conclusions ......................................................................................................... 43 References ........................................................................................................... 45 SECTION II COMPETITION LAW IN DEVELOPING COUNTRIES . ................................................. 50 INDIA , A CASE STUDY ............................................................................................ 50 Introduction ......................................................................................................... 51 1 Competition and Competition law: friends or foes?..................................... 52 1.1 The proliferation of Competition law ................................................................................... 52 1.2 Theoretical Underpinnings .................................................................................................... 55 1.3 The Antitrust revisionism ...................................................................................................... 58 1.4 Radical critiques .................................................................................................................... 61 3 | P a g e 1.5 Shall we export competition law? ......................................................................................... 64 2 Development concerns.................................................................................. 65 2.1 Limits of the Neoclassical approach ..................................................................................... 65 2.2 Weak legal systems and opportunism ................................................................................... 69 2.3 Transition and rent-seeking ................................................................................................... 78 2.4 Incentives to investments and entrepreneurship ................................................................... 82 2.5 Institutional weakness ........................................................................................................... 87 2.6 Summary ............................................................................................................................... 92 3 Competition law in India: A case study ........................................................ 93 3.1 Country overview .................................................................................................................. 93 3.2 The Monopoly and Restrictive Trade Practise Act ............................................................... 95 3.3 The Competition Act ............................................................................................................. 98 3.4 Lessons from India’s Competition laws .............................................................................. 100 Conclusions ....................................................................................................... 101 References ......................................................................................................... 102 SECTION III ECONOMICS OF FAILURE IN MOVIES AFTER THE BIG CRISIS .............................. 112 Introduction ....................................................................................................... 113 1 Narratives and complex representations of economics .............................. 114 1. Movies as Weapons of Mass Narrative embedment .............................. 118 2 Economic failure, 101 (or maybe not) ........................................................ 121 3 Filming the invisible hand .......................................................................... 126 4 Movies and economic failure: a macro analysis......................................... 130 5 Movies and economic failure: case studies ................................................ 137 Conclusions ....................................................................................................... 142 References ......................................................................................................... 143 Annex A: Movie database ................................................................................. 146 4 | P a g e 5 | P a g e RINGRAZIAMENTI Ringrazio per questa tesi tutti quelli che mi hanno accompagnato in questo percorso di studi, che è partito da Roma e si è spostato a Rotterdam, Ghent, Mumbai. In questi anni ho avuto meravigliose avventure intellettuali, che spero di aver degnamente condensato in questi tre scritti. Ringrazio l'Institute of Humane Studies della George Mason University, per cui ho preparato il paper sull'antitrust ai tempi di Google, e la meravigliosa faculty con cui ho avuto l'opportunità di discuterlo. Per l'articolo sulla ricezione del diritto della concorrenza nei paesi in via di sviluppo ringrazio la faculty dell'Indira Ghandi Institute for Development Research Mumbai, ma soprattutto al gruppo di ricercatori con cui ho condiviso l'esperienza indiana (e in particolare Maria Pia Sacco, Gabriela Witek e Pranav Sidwani: le discussioni nell'appartamento E4 durante i monsoni hanno contribuito a questo risultato). Ringrazio infine l'Istituto Bruno Leoni che, oltre ad essere stato il mio punto di riferimento culturale da molti anni, mi ha dato l'occasione per presentare l'articolo sulle rappresentazioni del fallimento economico nell'industria cinematografica prima e dopo la Crisi. Ringrazio gli altri Professori: Raffaele de Mucci, Lorenzo Infantino, Simona Fallocco, Nicola Iannello, Andrea Renda, che mi hanno accompagnata per un pezzetto di questo percorso intellettuale, e soprattutto il mio Supervisor, Roberto Pardolesi, che è stato guida (e pungolo!) costante in questi anni, ed ha accettato sempre di buon grado di seguire la mia ricerca in territori inusuali. Poichè non di soli articoli vive l'uomo, e nemmeno il dottorando, ringrazio tutti i miei amici che, a Roma e ovunque, che hanno accettato di continuare a frequentarmi nonostante gli propinassi sovente filippiche interminabili di analisi economica in pizzeria o al museo. Ringrazio ovviamente la mia famiglia, che mi ha sempre riempita di affetto e boccacci di sottoli. E l'app di Justeat, che mi ha sfamata sotto deadline. Ringrazio anche la mia seconda famiglia, l'Italian pack, con cui ho condiviso le gioie, i dolori e soprattutto i molti traslochi di questo dottorato. In particolare Giacomo Luchetta, per i commenti attenti e puntuali al mio lavoro, e per avermi ricordato costantemente che dovevo farlo (e fare le vaccinazioni, pagare le tasse, compilare certificati: grazie! Non avrei letteralmente finito senza di te). Ma questo lavoro lo dedico ai miei genitori, Vincenzo e Pina: non hanno una laurea, ma sono le persone da cui ho imparato di più nella vita. 6 | P a g e Tesi di dottorato di ricerca in diritto ed economia discussa presso l’Università LUISS Guido Carli - anno 2013 Rosamaria Bitetti, Google, Competition Policy and the Hegel's Owl - Tutti i diritti riservati GENERAL INTRODUCTION Fringe science is defined as scientific inquiry in an established field of study that departs from mainstream or orthodox theories, and is classified in the "fringes" of a credible mainstream academic discipline. If is there a common denominator of some the results of my last three years of research, that common denominator is being fringe law and economics. Fringe for the use of unorthodox economic paradigms - such as Austrian Economics - or for the uncommon application of Public Choice or Institutional Economics to more traditional law and economics issues. But fringe also because I have had the ambitious interest of inquiring whether mainstream analytical tools, regulatory theories do hold also at the margin of our discipline, whether the technological or institutional is radically different from the context in which those models originated.
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