Behavioral Antitrust†
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The Rule of Law & FTC: Thesis & Antithesis? Some Proposals
Volume 86 Issue 3 Dickinson Law Review - Volume 86, 1981-1982 3-1-1982 The Rule of Law & FTC: Thesis & Antithesis? Some Proposals John A. Maher Follow this and additional works at: https://ideas.dickinsonlaw.psu.edu/dlra Recommended Citation John A. Maher, The Rule of Law & FTC: Thesis & Antithesis? Some Proposals, 86 DICK. L. REV. 403 (1982). Available at: https://ideas.dickinsonlaw.psu.edu/dlra/vol86/iss3/2 This Article is brought to you for free and open access by the Law Reviews at Dickinson Law IDEAS. It has been accepted for inclusion in Dickinson Law Review by an authorized editor of Dickinson Law IDEAS. For more information, please contact [email protected]. The Rule of Law & FTC: Thesis & Antithesis? Some Proposals John A. Maher* I. Introduction A. Recent Events December 17, 1980 is a remarkable date for those interested in either quality of government or, more particularly, evolution of the Federal Trade Commission's sense of the unfair.' On that day, the five Commissioners then in office2 purported to renounce Commis- sion reliance on what they apparently regarded as a non-exclusive substantive rule of decision concerning the content of their enabling 3 act's use of "unfair . .acts or practices." That renounced can be said to possess the cachet of Supreme Court approval by reason of a unanimous opinion in FTC.v. Sperry & Hutchinson Co.4 (S&H). * A.B. 1951, University of Notre Dame; LL.B. 1956, LL.M. (Trade Regulation) 1957, New York University; Professor, Dickinson School of Law. Professor Maher currently serves the Banking & Business Law Section of the Pennsylvania Bar Association as chairperson of its antitrust committee and as a member of its committee for reform and recodification of Penn- sylvania's corporation and partnership laws. -
When Does Behavioural Economics Really Matter?
When does behavioural economics really matter? Ian McAuley, University of Canberra and Centre for Policy Development (www.cpd.org.au) Paper to accompany presentation to Behavioural Economics stream at Australian Economic Forum, August 2010. Summary Behavioural economics integrates the formal study of psychology, including social psychology, into economics. Its empirical base helps policy makers in understanding how economic actors behave in response to incentives in market transactions and in response to policy interventions. This paper commences with a short description of how behavioural economics fits into the general discipline of economics. The next section outlines the development of behavioural economics, including its development from considerations of individual psychology into the fields of neurology, social psychology and anthropology. It covers developments in general terms; there are excellent and by now well-known detailed descriptions of the specific findings of behavioural economics. The final section examines seven contemporary public policy issues with suggestions on how behavioural economics may help develop sound policy. In some cases Australian policy advisers are already using the findings of behavioural economics to advantage. It matters most of the time In public policy there is nothing novel about behavioural economics, but for a long time it has tended to be ignored in formal texts. Like Molière’s Monsieur Jourdain who was surprised to find he had been speaking prose all his life, economists have long been guided by implicit knowledge of behavioural economics, particularly in macroeconomics. Keynes, for example, understood perfectly the “money illusion” – people’s tendency to think of money in nominal rather than real terms – in his solution to unemployment. -
Price Competition with Satisficing Consumers
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Aberdeen University Research Archive Price Competition with Satisficing Consumers∗ Mauro Papiy Abstract The ‘satisficing’ heuristic by Simon (1955) has recently attracted attention both theoretically and experimentally. In this paper I study a price-competition model in which the consumer is satisficing and firms can influence his aspiration price via marketing. Unlike existing models, whether a price comparison is made depends on both pricing and marketing strategies. I fully characterize the unique symmetric equilibrium by investigating the implications of satisficing on various aspects of market competition. The proposed model can help explain well-documented economic phenomena, such as the positive correla- tion between marketing and prices observed in some markets. JEL codes: C79, D03, D43. Keywords: Aspiration Price, Bounded Rationality, Price Competition, Satisficing, Search. ∗This version: August 2017. I would like to thank the Editor of this journal, two anonymous referees, Ed Hopkins, Hans Hvide, Kohei Kawamura, Ran Spiegler, the semi- nar audience at universities of Aberdeen, East Anglia, and Trento, and the participants to the 2015 OLIGO workshop (Madrid) and the 2015 Econometric Society World Congress (Montreal) for their comments. Financial support from the Aberdeen Principal's Excel- lence Fund and the Scottish Institute for Research in Economics is gratefully acknowledged. Any error is my own responsibility. yBusiness School, University of Aberdeen - Edward Wright Building, Dunbar Street, AB24 3QY, Old Aberdeen, Scotland, UK. E-mail address: [email protected]. 1 1 Introduction According to Herbert Simon (1955), in most global models of rational choice, all alternatives are eval- uated before a choice is made. -
Amazon's Antitrust Paradox
LINA M. KHAN Amazon’s Antitrust Paradox abstract. Amazon is the titan of twenty-first century commerce. In addition to being a re- tailer, it is now a marketing platform, a delivery and logistics network, a payment service, a credit lender, an auction house, a major book publisher, a producer of television and films, a fashion designer, a hardware manufacturer, and a leading host of cloud server space. Although Amazon has clocked staggering growth, it generates meager profits, choosing to price below-cost and ex- pand widely instead. Through this strategy, the company has positioned itself at the center of e- commerce and now serves as essential infrastructure for a host of other businesses that depend upon it. Elements of the firm’s structure and conduct pose anticompetitive concerns—yet it has escaped antitrust scrutiny. This Note argues that the current framework in antitrust—specifically its pegging competi- tion to “consumer welfare,” defined as short-term price effects—is unequipped to capture the ar- chitecture of market power in the modern economy. We cannot cognize the potential harms to competition posed by Amazon’s dominance if we measure competition primarily through price and output. Specifically, current doctrine underappreciates the risk of predatory pricing and how integration across distinct business lines may prove anticompetitive. These concerns are height- ened in the context of online platforms for two reasons. First, the economics of platform markets create incentives for a company to pursue growth over profits, a strategy that investors have re- warded. Under these conditions, predatory pricing becomes highly rational—even as existing doctrine treats it as irrational and therefore implausible. -
Caspar Weinberger and the Reagan Defense Buildup
The University of Southern Mississippi The Aquila Digital Community Dissertations Fall 12-2013 Direct Responsibility: Caspar Weinberger and the Reagan Defense Buildup Robert Howard Wieland University of Southern Mississippi Follow this and additional works at: https://aquila.usm.edu/dissertations Part of the American Studies Commons, Military History Commons, Political History Commons, and the United States History Commons Recommended Citation Wieland, Robert Howard, "Direct Responsibility: Caspar Weinberger and the Reagan Defense Buildup" (2013). Dissertations. 218. https://aquila.usm.edu/dissertations/218 This Dissertation is brought to you for free and open access by The Aquila Digital Community. It has been accepted for inclusion in Dissertations by an authorized administrator of The Aquila Digital Community. For more information, please contact [email protected]. The University of Southern Mississippi DIRECT RESPONSIBILITY: CASPAR WEINBERGER AND THE REAGAN DEFENSE BUILDUP by Robert Howard Wieland Abstract of a Dissertation Submitted to the Graduate School Of The University of Southern Mississippi In Partial Fulfillment of the Requirements For the Degree of Doctor of Philosophy December 2013 ABSTRACT DIRECT RESPONSIBILITY: CASPAR WEINBERGER AND THE REAGAN DEFENSE BUILDUP by Robert Howard Wieland December 2013 This dissertation explores the life of Caspar Weinberger and explains why President Reagan chose him for Secretary of Defense. Weinberger, not a defense technocrat, managed a massive defense buildup of 1.5 trillion dollars over a four year period. A biographical approach to Weinberger illuminates Reagan’s selection, for in many ways Weinberger harkens back to an earlier type of defense manager more akin to Elihu Root than Robert McNamara; more a man of letters than technocrat. -
Featured Topic Social & Behavioral Science Interventions at the Federal Level in This Issue Nudging People to Get Flu Vaccinations
a publication of the behavioral science & policy association volume 2 issue 2 2016 featured topic social & behavioral science interventions at the federal level in this issue Nudging people to get flu vaccinations behavioralpolicy.org founding co-editors disciplinary editors Craig R. Fox (UCLA) Behavioral Economics Sim B Sitkin (Duke University) Senior Disciplinary Editor Dean S. Karlan (Yale University) bspa executive director Associate Disciplinary Editors Oren Bar-Gill (Harvard University) Colin F. Camerer (California Institute ofTechnology) Kate B.B. Wessels M. Keith Chen (UCLA) advisory board Julian Jamison (World Bank) Paul Brest (Stanford University) Russell B. Korobkin (UCLA) David Brooks (New York Times) Devin G. Pope (University of Chicago) John Seely Brown (Deloitte) Jonathan Zinman (Dartmouth College) Robert B. Cialdini (Arizona State University) Adam M. Grant (University of Pennsylvania) Cognitive & Brain Science Daniel Kahneman (Princeton University) Senior Disciplinary Editor Henry L. Roediger III (Washington University) James G. March (Stanford University) Associate Disciplinary Editors Yadin Dudai (Weizmann Institute & NYU) Jeffrey Pfeffer (Stanford University) Roberta L. Klatzky (Carnegie Mellon University) Denise M. Rousseau (Carnegie Mellon University) Hal Pashler (UC San Diego) Paul Slovic (University of Oregon) Steven E. Petersen (Washington University) Cass R. Sunstein (Harvard University) Jeremy M. Wolfe (Harvard University) Richard H. Thaler (University of Chicago) Decision, Marketing, & Management Sciences executive committee Senior Disciplinary Editor Eric J. Johnson (Columbia University) Associate Disciplinary Editors Linda C. Babcock (Carnegie Mellon University) Morela Hernandez (University of Virginia) Max H. Bazerman (Harvard University) Katherine L. Milkman (University of Pennsylvania) Baruch Fischhoff (Carnegie Mellon University) Daniel Oppenheimer (UCLA) John G. Lynch (University of Colorado) Todd Rogers (Harvard University) John W. -
Behavioral Economics and Marketing in Aid of Decision Making Among the Poor
Behavioral Economics and Marketing in Aid of Decision Making Among the Poor The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters Citation Bertrand, Marianne, Sendhil Mullainathan, and Eldar Shafir. 2006. Behavioral economics and marketing in aid of decision making among the poor. Journal of Public Policy and Marketing 25(1): 8-23. Published Version http://dx.doi.org/10.1509/jppm.25.1.8 Citable link http://nrs.harvard.edu/urn-3:HUL.InstRepos:2962609 Terms of Use This article was downloaded from Harvard University’s DASH repository, and is made available under the terms and conditions applicable to Other Posted Material, as set forth at http:// nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of- use#LAA Behavioral Economics and Marketing in Aid of Decision Making Among the Poor Marianne Bertrand, Sendhil Mullainathan, and Eldar Shafir This article considers several aspects of the economic decision making of the poor from the perspective of behavioral economics, and it focuses on potential contributions from marketing. Among other things, the authors consider some relevant facets of the social and institutional environments in which the poor interact, and they review some behavioral patterns that are likely to arise in these contexts. A behaviorally more informed perspective can help make sense of what might otherwise be considered “puzzles” in the economic comportment of the poor. A behavioral analysis suggests that substantial welfare changes could result from relatively minor policy interventions, and insightful marketing may provide much needed help in the design of such interventions. -
Academia and Law, 63-64 Administrative Law Judges (Aljs), 54, 86
INDEX academia and law, 63-64 administrative law judges (ALJs), 54, 86, 153-54 advertising, 72 and children, 77 corrective, 52-53 industry study, 54-55 Joe Camel campaign, 167-68 Aleinikoff, T. Alexander, 184 American Bar Association Antitrust Law Section, 42,43,44,45, 93, 108-109, 138 Commission to Study the FTC, 42-50 second Kirkpatrick Commission Report, 84, 124 Anthony, Sheila, 163 AOL (America On Line), 140, 147-48 Areeda, Phillip E., 68, 71 Areen, Judith, 100, 101, 108, 184 Arnold & Porter, 30, 52, 60, 92, 178, 180, 182, 187 Ashenfeld, Orley, 143 Askanaga, Mary, 123 Association of American Law Schools (AALS), 67 automobile industry, 75-76 Baer, William J., 89-90, 124, 135, 160, 171 Baker, Jonathan, 124 Bar Association of the District of Columbia, 93-94 Bartel, Paul, 81 Bator, Paul, 64, 68, 70, 71 Baxter, William, 91 Beard, Dita, 87 Beechnut/Heinz, 142, 145-46 Bernstein, Jodie, 51-52, 124, 128, 133, 135, 139, 154, 165, 167, 171 Bar Association of the District of Columbia, 93, 94 and Food and Drug Administration (FDA), 173 identity theft measures, 176-77 review process changes, 169-70 Bernstein, Lewis, 28 Bingaman, Anne, 116-17,121, 137 Black, Charles, 19 Blake, Harlan, 39,40,43, 62 Boast, Molly, 171 Boies, David, 125, 156, 157 -AI- Bok, Betty, 43 Bork, Robert, 3 8, 120 BP/Arco, 148-49 Brandeis, Louis D., 125 Brennan, William J., 5, 100 Breyer, Stephen, 60, 68, 71, 152 Brown, Charles, 157 Browne, John, 148 Buc, Nancy, 5 1,56 Bureau of Consumer Protection. See Federal Trade Commission Burson, Charles, 119 Bush, George, 121, 179 Bush, George W., 163, 179, 180 Califano, Joseph, 33,61,68, 100, 106 Calkins, Stephen, 124 cartels, 128-30 Carter, James E. -
Sendhil Mullainathan [email protected]
Sendhil Mullainathan [email protected] _____________________________________________________________________________________ Education HARVARD UNIVERSITY, CAMBRIDGE, MA, 1993-1998 PhD in Economics Dissertation Topic: Essays in Applied Microeconomics Advisors: Drew Fudenberg, Lawrence Katz, and Andrei Shleifer CORNELL UNIVERSITY, ITHACA, NY, 1990-1993 B.A. in Computer Science, Economics, and Mathematics, magna cum laude Fields of Interest Behavioral Economics, Poverty, Applied Econometrics, Machine Learning Professional Affiliations UNIVERSITY OF CHICAGO Roman Family University Professor of Computation and Behavioral Science, January 1, 2019 to present. University Professor, Professor of Computational and Behavioral Science, and George C. Tiao Faculty Fellow, Booth School of Business, July 1, 2018 to December 31, 2018. HARVARD UNIVERSITY Robert C Waggoner Professor of Economics, 2015 to 2018. Affiliate in Computer Science, Harvard John A. Paulson School of Engineering and Applied Sciences, July 1, 2016 to 2018. Professor of Economics, 2004 (September) to 2015. UNIVERSITY OF CHICAGO Visiting Professor, Booth School of Business, 2016-17. MASSACHUSETTS INSTITUTE OF TECHNOLOGY Mark Hyman Jr. Career Development Associate Professor, 2002-2004 Mark Hyman Jr. Career Development Assistant Professor, 2000-2002 Assistant Professor, 1998- 2000 SELECTED AFFILIATIONS Co - Founder and Senior Scientific Director, ideas42 Research Associate, National Bureau of Economic Research Founding Member, Poverty Action Lab Member, American Academy of Arts -
Connections in Transportation Department of Urban Studies and Planning, MIT, Spring 2015
Behavior and Policy 11.478 Behavior and Policy: Connections in Transportation Department of Urban Studies and Planning, MIT, Spring 2015 Full Reading List Part I: Behavior and Policy in a Nutshell Class 1. Cafeteria Trays and Multiple Frameworks • Etheredge (1976) The case of the unreturned cafeteria trays: An Investigation based upon theories of motivation and human behavior Class 2. Ten Instruments for Behavioral Change • Miller and Prentice (2013) Psychological Levers of Behavior Change, Chapter 17 in Eldar Shafir, The Behavioral Foundations of Public Policy • Richard Thaler, Cass R. Sunstein: Nudge: Improving Decisions About Health, Wealth, and Happiness, Introduction • Daniel Kahneman: Thinking, Fast and Slow, Introduction Class 3. Measurement, Tools and Technology (Emile Bruneau) • Emile Bruneau 2015 "Putting Neuroscience to Work for Peace”, Working Paper • Duflo, E., Glennerster, R., & Kremer, M. (2007). Using randomization in development economics research: A toolkit. Handbook of development economics, 4, 3895-3962. • Greenwald, A. G., Nosek, B. A., & Banaji, M. R. (2003). Understanding and using the implicit association test: I. An improved scoring algorithm. Journal of personality and social psychology, 85(2), 197. You may try the Implicit Association Test here https://implicit.harvard.edu/ • Winter Mason and Siddharth Suri (2012) Conducting Behavioural Research on Amazon’s Mech Turk, Behavior Research Method 44(1) Class 4. My Brain at the Bus Stop: EEG & Waiting • Dan Ariely and Gregory S. Berns (2010), “Neuromarketing: The Hope and Hype of Neuroimaging in Business.” Nature Reviews Neuroscience. • Li, Zelin, F. Duarte, J. Zhao, Z. Zhao (2015) My brain at the bus stop: an exploratory framework for applying EEG-based emotion detection techniques in transportation study, working paper Class 5. -
Failures of Utility Maximization Failures Of
2/1/2017 Failures of Utility Maximization • Choice difficulty • Too much choice • Asymmetric dominance/compromise effects Failures of Utility Maximization • Leaving money on the table • Endowment effect Behavioral Economics • Status quo bias • Faming effects Columbia University • Preference reversals Mark Dean • Random Choice 1 2 Failures of Utility Maximization Choice Difficulty • Choice difficulty • Basic Idea: People may dislike making difficult • Too much choice comparisons • Asymmetric dominance/compromise effects • • Leaving money on the table May behave in such a way as to avoid having • Endowment effect to make such comparisons • Status quo bias • Faming effects • Preference reversals • Random Choice 3 4 Example: Tversky and Shafir (1992) Example: Tversky and Shafir (1992) • 80 Subjects • 80 Subjects • Each subject filled out a questionnaire • Each subject filled out a questionnaire • Paid $1.50 for doing so • Paid $1.50 for doing so • Two treatments: • Two treatments: 25% 75% 5 6 1 2/1/2017 Example: Tversky and Shafir (1992) Example: Tversky and Shafir (1992) • 80 Subjects • Clear violation of IIA • Each subject filled out a questionnaire – If money was chosen in the ‘big’ choice set, should also should have been chosen in the • Paid $1.50 for doing so smaller choice set • Two treatments: • Interpretation: Stay with the money in order to avoid the ‘difficult choice’ between the different types of pen • Taken as an example of ‘decision avoidance’ 25% 75% 53% 47% 7 8 Failures of Utility Maximization Too Much Choice • Choice difficulty -
Sendhil Mullainathan Education Fields of Interest Professional
Sendhil Mullainathan Robert C Waggoner Professor of Economics Littauer Center M-18 Harvard University Cambridge, MA 02138 [email protected] 617 496 2720 _____________________________________________________________________________________ Education HARVARD UNIVERSITY, CAMBRIDGE, MA, 1993-1998 PhD in Economics Dissertation Topic: Essays in Applied Microeconomics Advisors: Drew Fudenberg, Lawrence Katz, and Andrei Shleifer CORNELL UNIVERSITY, ITHACA, NY, 1990-1993 B.A. in Computer Science, Economics, and Mathematics, magna cum laude Fields of Interest Behavioral Economics, Poverty, Applied Econometrics, Machine Learning Professional Affiliations HARVARD UNIVERSITY Robert C Waggoner Professor of Economics, 2015 to present. Affiliate in Computer Science, Harvard John A. Paulson School of Engineering and Applied Sciences, July 1, 2016 to present Professor of Economics, 2004 (September) to 2015. UNVIRSITY OF CHICAGO Visiting Professor, Booth School of Business, 2016-17. MASSACHUSETTS INSTITUTE OF TECHNOLOGY Mark Hyman Jr. Career Development Associate Professor, 2002-2004 Mark Hyman Jr. Career Development Assistant Professor, 2000-2002 Assistant Professor, 1998- 2000 SELECTED AFFILIATIONS Co - Founder and Senior Scientific Director, ideas42 Research Associate, National Bureau of Economic Research Founding Member, Poverty Action Lab Member, American Academy of Arts and Sciences Contributing Writer, New York Times Sendhil Mullainathan __________________________________________________________________ Books Scarcity: Why Having Too Little Means So Much, joint with Eldar Shafir, 2013. New York, NY: Times Books Policy and Choice: Public Finance through the Lens of Behavioral Economics, joint with William J Congdon and Jeffrey Kling, 2011. Washington, DC: Brookings Institution Press Work in Progress Machine Learning and Econometrics: Prediction, Estimation and Big Data, joint with Jann Spiess, book manuscript in preparation. “Multiple Hypothesis Testing in Experiments: A Machine Learning Approach,” joint with Jens Ludwig and Jann Spiess, in preparation.