Artificial Intelligence

The EU’s AI Act Shows How To Regulate AI. It Could Be Improved

In light of the rise of generative artificial intelligence (AI) and recent debates about the socio-political implications of large-language models and chatbots, Manuel Wörsdörfer analyzes the strengths and weaknesses of the European Union’s Artificial Intelligence Act (AIA), the world’s first comprehensive attempt by a government body to address and mitigate the potential negative impacts of AI technologies. He recommends areas where the AIA could be improved.

Pricing Algorithms Aren’t Colluding, Yet

Axel Gautier, Ashwin Ittoo, and Pieter van Cleynenbreugel write that the practice of pricing algorithms tacitly colluding remains theoretical for now, and technological obstacles render it very unlikely in the short term. However, regulators must still prepare for a future in which artificial intelligence achieves the necessary sophistication to collude.

Can Computational Tools Revitalize Antitrust Enforcement?

Companies increasingly use sophisticated computational tools to compete, particularly in digital markets. Giovanna Massarotto outlines how antitrust agencies must similarly modernize and adopt advanced technologies to address complex antitrust enforcement challenges effectively and remain relevant.

Algorithms and AI Are Radically Changing Insurance. Regulators Are Behind the Curve

The growing use of artificial intelligence to price insurance could erode basic legal protections built into the law to protect both individuals and the...

LATEST NEWS

Regulation

Why Have Uninsured Depositors Become De Facto Insured?

Michael Ohlrogge

Due to a change in how the FDIC resolves failed banks, uninsured deposits have become de facto insured. Not only is this dangerous for risk in the banking system, it is not what Congress intends the FDIC to do, writes Michael Ohlrogge.

Antitrust and Competition

Merger Law Reaches Acquirer Incentives and Private Equity Strategies

Steven Salop

Steven C. Salop argues that Section 7 of the Clayton Act prohibits mergers in which the acquiring firm’s unilateral incentives and business strategy are likely to lessen market competition.

Antitrust and Competition

Tim Wu Responds to Letter by Former Agency Chief Economists

Tim Wu

Former special assistant to the president for technology and competition policy Tim Wu responds to the November 27 letter signed by former chief economists at the Federal Trade Commission and Justice Department Antitrust Division calling for a separation of the legal and economic analysis in the draft Merger Guidelines.

Book Reviews

Can the Public Moderate Social Media?

Surya Gowda

ProMarket student editor Surya Gowda reviews the arguments made by Paul Gowder in his new book, The Networked Leviathan: For Democratic Platforms.

Income Inequality

Uninhibited Campaign Donations Risks Creating Oligarchy

Valentino Larcinese, Alberto Parmigiani

In new research, Valentino Larcinese and Alberto Parmigiani find that the 1986 Reagan tax cuts led to greater campaign spending from wealthy individuals, who benefited the most from this policy. The authors argue that a very permissive system of political finance, combined with the erosion of tax progressivity, created the conditions for the mutual reinforcement of economic and political disparities. The result was an inequality spiral hardly compatible with democratic ideals.