The Equitable Economy

Can Shareholder Democracy Fill the Void of a Dysfunctional Regulatory System?

As financial markets take on societal challenges like climate change, new research from Robin Döttling, Doron Levit, Nadya Malenko and Magdalena Rola-Janicka explores how shareholder democracy interacts with the political process to impact public goods provisions. The authors investigate the potential of investor-driven governance to supplement the shortfalls of the regulatory system, highlighting both benefits and risks posed by wealth inequality and ESG backlash.

Can the FTC’s PBM Complaint Create a Competitive Pharmaceutical Marketplace?

Fiona Scott Morton reviews the merits of the Federal Trade Commission’s complaint against the three largest pharmacy benefit managers (PBMs) for suppressing competition in pharmaceutical markets. Although the complaint’s alleged harms are narrow, it is a welcome start that promises to shed light on the PBM’s expansive anticompetitive practices and ultimately lower drug prices for Americans.

The Politicization of Social Responsibility

Todd A. Gormley, Manish Jha and Meng Wang examine the impact of state-level political dynamics on the support institutional investors provide to socially responsible investing (SRI) proposals. The findings reveal that investors are less likely to support SRI initiatives at firms headquartered in Republican-led states, suggesting that regional political pressures are shaping corporate social responsibility trends.

Is Labor Antitrust a “Nonexistent” Problem?

In a recent revision of its Premerger Notification Regulation, the FTC removed labor market provisions from the previous draft as Commissioner Melissa Holyoak dismissed them as "a solution in search of a nonexistent problem." Eric Posner argues that her assessment contradicts a substantial body of academic research showing that labor market concentration is indeed a serious concern.

Reclaiming Corporate Democracy

The following is an excerpt from Sarah C. Haan’s book, “Reclaiming Corporate Democracy.”

Democracy and Economic Growth: New Evidence

Democracy sees higher GDP due to greater civil liberties, economic reform, increased investment and government capacity, and reduced social conflict. This post originally appeared...

How Cultural Norms Help Companies Exploit Unpaid Workers

Eric Posner examines how businesses exploit cultural expectations to frame certain activities as non-work, creating a form of monopsony power that allows them to extract labor without compensation in areas ranging from college athletics to digital content creation. He argues that properly classifying these "invisible" forms of work as compensable labor would benefit society, challenging anti-commodification concerns and highlighting the law's struggle to define work in these blurred contexts.

Proxy Voting’s Hidden Influence on Corporate Takeovers and Activist Campaigns

Roslyn Layton writes that proxy advisors, which provide voting services for shareholder meetings, can influence how publicly traded firms conduct their business. Two proxy firms–Glass Lewis and Institutional Shareholder Services (ISS)–have 97 percent of the market and have allowed some minority shareholders to exercise outsized influence.

The Next Administration Must Protect Workers From Monopsony Bargaining Power

Steven C. Salop recommends that the next presidential administration continue to focus competition policy on protecting against adverse labor market outcomes. He suggests several policies the administration might pursue to achieve these benefits.

The Supreme Court’s War on the NLRB and Workers

Dylan Gyauch-Lewis reviews the Supreme Court’s recent spate of rulings redefining administrative law and how they threaten the National Labor Relations Board’s authority.

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