Issues

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.

Antisocial Media: How Facebook Disconnects Us and Undermines Democracy

Facebook and other tech firms have failed to filter out racism and other harmful ideas from the public sphere and encourage people to express themselves in shallow ways. The idea that the Internet would lead to more freedom and more competition was a myth.

Does Antitrust Have a Role to Play in Regulating Big Data?

This paper reviews studies that consider whether antitrust law should be used to regulate big data. Most conclude that such a use of antitrust law could harm innovation and consumers. Generally, the use of big data supports competition and benefits consumers.

FRAND (And Industrial Policy) in China

Some patents must be licensed under fair, reasonable, and non-discriminatory (FRAND) terms. China’s Anti-Monopoly Law (AML) empowers Chinese authorities to decide cases involving such licenses. Because the Chinese economy is so large, Chinese decisions will affect licensing worldwide.

Antitrust via Rulemaking: Competition Catalysts

Some observers note a decline in competition in American industry; fewer new firms are entering the market, and markets are becoming more concentrated. Federal and state agencies can devise regulations to catalyze competition.

Antitrust and Intellectual Property: A Brief Introduction

This chapter explores the conflict between antitrust law and intellectual property (IP) rights. Antitrust law aims at limiting monopoly power, while IP rights tend to establish limited monopolies in ideas, but IP rights rarely confer the ability to raise prices without losing customers.

Patent Assertion Entities and Competition Policy

Firms that own and license patents but do not produce anything are known as patent assertion entities (PAE), or patent trolls. PAE can harm competition and innovation. This book collects studies of PAEs and competition policy from the United States, China, Korea, and Europe.