Fiona Scott Morton and David Dinielli show how landmark antitrust cases historically have cleared the path for innovation in the next “frontier technology.” But with closing arguments in the search monopoly case just days away, Google threatens to evade this round of rigorous new competition. It reportedly is in talks to place its own artificial intelligence tool on Apple devices as it did in the case of search. Such a maneuver would entrench Google’s search monopoly and place Google in the driver’s seat to steer the development of consumer-facing AI. The authors offer up a menu of steps the government might take now to thwart Google’s new anticompetitive strategy and preserve competition in AI before it’s too late.

COMMENTARY

The Political Economy of Populism in India

Louise Tillin explores the sources of populism in India, its recent developments, and what this means for the country’s 2024 general election, which begins April 19 and ends June 1.

RESEARCH

High Prices and Market Power of Academic Publishing Reduce Article Citations

In new research, Yonghong An, Michael A. Williams, and Mo Xiao find that increases in an academic journal’s subscription price and its publisher’s market share leads to fewer article citations, hindering knowledge creation and research collaboration.
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LATEST

Do Revenue Management Platforms Like RealPage Facilitate Illegal Algorithmic Collusion?

A growing number of companies offer artificial intelligence-powered revenue management platforms, which leverage big data and sensitive business information from multiple firms to optimize pricing, output, and other operational decisions for their clients. Over the past 18 months, dozens of antitrust lawsuits have alleged that such platforms facilitate price-fixing among rivals. Barak Orbach explores the strength of the allegations and the antitrust implications of such revenue management platforms.

Cung Le v. Zuffa Promised To Change the UFC. What the Settlement Means for MMA Fighters and the Industry

On March 13, the Ultimate Fighting Championship settled several lawsuits, including Cung Le v. Zuffa, which was scheduled to go to trial in April. The plaintiffs in Cung Le had accused the mixed martial arts organization of several anticompetitive behaviors that led to the suppression of fighter wages. Stephen F. Ross and Gurtej Grewal recount the facts of the case and what the settlement might mean for the industry.

How To Fix Flying in the U.S.

William J. McGee argues that airline deregulation in the United States has not delivered on its promised benefits of lower fares, increased safety, and more competition, but instead has led to industry consolidation, regional inequality, and degradation of passenger rights. McGee proposes a suite of policy recommendations to address these issues, including measures to expand geographic networks, increase airport access, encourage new entrants, simplify pricing, and improve passenger rights, labor, and safety standards.

If You Care About the Climate, Should You Be Anti-AI?

Environmentally conscious critics of artificial intelligence worry about the massive amounts of energy and fresh water its data centers require. Alessio Terzi writes that in the long term, and with the help of government regulation, the benefits of AI-accelerated innovation will outweigh the short-term environmental costs we now observe.

Are We Tumbling Toward an Adults-Only Internet?

Meg Leta Jones, Mac Milin Kiran and Cal Newport argue that the introduction of age verification mechanisms in proposed child online safety legislation may unintentionally result in an adults-only internet, as platforms opt to deny access to children rather than implement complex compliance measures. This potential outcome necessitates a fundamental debate about the intended audience of the internet and the balance between protecting children and preserving their rights to access and expression in the digital realm.

READING LISTS

Americans spend significantly more on health care than any other country. Why? Answers to this question range from hospital monopolies to perverse incentives to opaque pricing to medical licensing to pharmaceutical firms abusing IP practices to “creeping consolidation.” Why is the US health care system so broken? And what can antirust do about it? Catch-up on our coverage of antitrust and the US health care system.

We Need Better Research on the Relationship Between Market Power and Productivity in the Hospital Industry

Antitrust debates have largely ignored questions about the relationship between market power and productivity, and scholars have provided little guidance on the issue due to data limitations. However, data is plentiful on the hospital industry for both market power and operating costs and productivity, and researchers need to take advantage, writes David Ennis.

Lowering the Barriers to Entry for Economics Research in Healthcare

A new collection of scholarly work on the economics of the US healthcare sector is released today. The following is an adaptation of the...

Rethinking How To Achieve Universal Health Care Coverage in the US

Solutions to expanding heath care coverage in the U.S. are often incremental and focus on mitigating market failures. In new research, Katherine Baicker, Amitabh...

Antitrust Enforcement Is Not Enough to Address Anticompetitive Conduct in Pharmaceutical Markets. Market-Oriented Legal Reform is Needed.

Federal antitrust enforcement has been robust and effective in promoting prescription drug market competition and thereby enhancing consumer welfare. Antitrust enforcement in itself, however,...

George J. Stigler, one of the most influential economists of the 20th century, won the Nobel Prize in Economic Sciences in 1982 “for his seminal studies of industrial structures, functioning of markets, and causes and effects of public regulation.” His research upended the idea that government regulation was effective at correcting private-market failures. Stigler introduced the idea of regulatory capture, in which regulators could be dominated by special interests. These regulators would work for the benefit of large, monied organizations rather than the public good. Catch up on ProMarket's coverage of his legacy.

Digital Empires

The following is an excerpt from the book Digital Empires - The Global Battle to Regulate Technology by Anu Bradford, published by Oxford University Press and reprinted here by permission. Check out today's Stigler Center webinar with Bradford in conversation with Filippo Lancieri about her new book.

Driving Innovation with Antitrust

Giovanna Massarotto writes that antitrust actions against major technology companies like AT&T, IBM, and Microsoft over the past century, though imperfect, have positively impacted innovation and competition in the computer industry by restricting anticompetitive behavior while allowing breakthrough technologies to flourish through carefully crafted remedies. This stands in contrast with Europe, which has seen less homegrown innovation from its technology companies.

Corporate Attacks Against the National Labor Relations Board Could Break the Government

Dylan Gyauch-Lewis writes that efforts by big businesses, including SpaceX, Amazon, and Trader Joe’s, to undermine the National Labor Relations Board rests on poor interpretations of the Constitution but would devastate the American government and economy if successful. 

TI’s Calculator Monopoly Offers Lessons for Educators in the Age of Generative AI

Texas Instruments’ TI-84 calculator has been the standard graphing calculator for American students for twenty years, despite its high cost and lack of innovation. Barak and Eli Orbach explore how Texas Instruments created its entrenched calculator monopoly and the lessons it offers educators as they grapple with the emerging possibilities of artificial intelligence in the classroom.

Michael C. Jensen Tribute

Nobel Laureate Eugene F. Fama pays tribute to economist Michael C. Jensen, who recently passed. Fama reminds us of Jensen’s unmatched career as a researcher and founder of the Journal of Financial Economics and SSRN.

Using Economics To Diagnose a Lessening of Competition

Carl Shapiro discusses the central role of economics in merger review under Section 7 of the Clayton Act. Shapiro traces the evolution of merger law in response to advances in Industrial Organization economics over the past 50 years, highlighting how economic concepts and analysis are indispensable for predicting the likely competitive effects of proposed mergers.

Industrial Policy Is a Verb

Critics of industrial policy claim that state interventions into the market lead to inefficient subsidies, protectionism, or the “picking of winners.” Kartik Akileswaran and Rohan Sandhu argue that when industrial policy is instead viewed as an iterative, dynamic process between the private and public sectors, and undergirded by the state's capacity to play this role,  it leads to a more sophisticated understanding of industrial policy’s manifold historical manifestations and benefits.

COLUMNS

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