Issues

Competing in the Age of AI

Artificial Intelligence (AI) enables the rapid growth of a new type of firm. Many traditional firms now compete directly with AI-based firms. Business strategies and competitive processes are changing.

Platforms, Power and the Antitrust Challenge: A Modest Proposal to Narrow the U.S.–Europe Divide

Tech platforms like Facebook and Google dominate the new economy. European Union (EU) authorities are more aggressive than those in the United States in using competition law against tech platforms.

The Economics of Markets and Platforms

Some economic models omit intermediaries, entrepreneurs, and other key factors in dynamic markets. The study of platforms like eBay and Etsy leads to the development of more realistic economic models.

Privacy’s Constitutional Moment and the Limits of Data Protection

The United States Congress must decide whether to enact a national privacy law like Europe’s General Data Protection Regulation (GDPR). But GDPR-style rules fail to protect against many harms of data overuse.

Artificial Intelligence, Economics, and Industrial Organization

Deployment of artificial Intelligence (AI) and machine learning (ML) systems will affect the size and choices of firms that provide or use AI services. Economists consider the effects of AI on pricing, firm size, competition, privacy, and security.

Auctions versus Posted Prices in Online Markets

When eBay first became popular, most sellers listed goods for sale in an auction format. Over time, posted prices began to predominate. Sellers were influenced by two factors, growing competition between sellers, and buyers’ preference for the convenience of posted prices.

Why Incentives For "Patent Holdout" Threaten to Dismantle FRAND, And Why It Matters

Some favor manufacturers over innovators in disputes over licensing terms for standard-essential patents (SEPs). But manufacturers and innovators should receive reciprocal benefits from their commitment to licensing the SEPs. Manufacturers have a duty to negotiate in good faith.

The Missing Role of Economics in FTC Privacy Policy

Privacy regulation restricts information flows, the lifeblood of the digital economy, and have significant economic impact. Yet actions by the Federal Trade Commission (FTC) to protect privacy often lack economic analysis and fail to provide clear evidence of consumer harm.

Fixing Social Media's Grand Bargain

Social media firms like Facebook offer services for free in exchange for data from end users, using the data to sell advertising. This bargain encourages social media firms and advertisers to manipulate users.

How Essential are Standard-Essential Patents?

Standard-essential patents (SEPs) cover technologies needed to make complex products like wi-fi. Patent trolls that assert SEPs in court win few cases, often because the patent was not actually infringed.