In new research, Alexander Furnas, Timothy LaPira, and Clare Brock find that most politically active organizations engage in either campaign contributions or lobbying, but rarely both.The findings have implications for regulation and future academic research.

COMMENTARY

Meta’s Winning Market Definition in Its Monopoly Case Relied on a Flawed Empirical Assumption

Meta prevailed in its monopoly case against the Federal Trade Commission by showing that the FTC’s market definition of personal social media was too narrow. However, Meta’s argument—and Judge James Boasberg’s ruling—rested on a flawed empirical assumption that confuses how users divert their time to other activities when no longer able to use a Meta platform with true product substitution.

RESEARCH

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LATEST

AI Transforms Search in a Way That Could Make Google’s Default Advantage Stronger

Judge Amit Mehta’s remedies for Google’s search monopoly stopped short of banning payments for default search placement, reflecting the hope that generative AI will erode the power of traditional search. Cristian Santesteban argues the opposite: in the AI era of search, defaults may matter more by steering critical data and learning signals from AI-powered search sessions to the most dominant product. This mechanism can potentially compound Google’s advantage.

Regulatory Attempts To Ban Stablecoin Yields Cannot Compete With Economics

Congressional attempts to ban cryptocurrency platforms from providing yield, or interest, on stablecoin holdings have so far failed, and will likely continue to fail, as long as they run up against economic logic, writes David Krause.

What 150 Years of the Telephone Teaches Us About Regulating Digital Communications

On the 150th anniversary of the first telephone call, John Haigh, Nancy Rose, and Jonathan Sallet reflect on lessons from the history of telecommunications...

Why Private Market Funds Are Dangerous for Retail Investors

In new research, Ben Bates examines the recent wave of funds designed to open private markets to retail investors. Such funds both underreport volatility and perform worse than comparable funds aimed at wealthier investors.

Why the World Economic Order Is Spiraling Into Disorder

The following is an excerpt from “The Doom Loop: Why the World Economic Order Is Spiraling into Disorder" by Eswar Prasad," now out at Hachette Book Group.

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.

Common Ownership May Reduce the Entry of Cheaper Generic Drugs

In new research, Martin Schmalz and Jin Xie examine how shareholder preferences influence the United States pharmaceutical industry. They find that generic-drug manufacturers sometimes harm their firms’ own value when doing so benefits shareholder portfolios, who frequently have stakes in competing brand-name firms.

Novo Nordisk’s Offer To Acquire Metsera Constitutes Attempted Monopolization

Hannah Pittock uses weight-loss company Novo Nordisk’s offer to acquire Metsera to create a three-prong framework by which the antitrust agencies can identify when an invitation to exclude a rival from a market constitutes illegal exclusionary conduct under Section 2 of the Sherman Act.

Novo Nordisk’s Killer Non-Acquisition Merger Contract Proposal Is a Case of “Heads I Win, Tails You Lose”

Steve Salop explores the anticompetitive innovation behind weight-loss giant Novo Nordisk’s offer to acquire Metsera. Novo’s proposed contract presents a new tactic by which firms with market power can preclude rival mergers that will lead to procompetitive entry.

Will Trump’s Drug-Pricing Order Reduce Prices for Americans?

President Donald Trump has, across two administrations, sought to lower drug prices for Americans, most recently with executive order “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients.” Margherita Colangelo explains why his order is unlikely to accomplish its goal.

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.

When Governments Stop Publishing Notices in Newspapers, Does Anyone Notice?

In new research providing the first systematic evidence on public notices, Kimberlyn Munevar, Anya Nakhmurina, and Delphine Samuels examine how Florida's 2023 law allowing local governments to stop publishing public notices in newspapers has affected citizen engagement in local governance.

Repealing P2B-Regulation as Part of Digital Omnibus Allows the EU To AI-Proof the DMA

The EU’s proposed Digital Omnibus to simplify digital regulation suggests repealing the 2019 Platform-to-Business Regulation. This poses a problem for the Digital Markets Act, which relies on the P2B-Regulation for how to define core platform services like search engines. Moving forward with the repeal will require legislators to renegotiate first the DMA, which is necessary anyways to adapt the law to the age of artificial intelligence, writes Jan-Frederick Göhsl.

Trump’s Attack on Capitalism

The Trump administration’s blacklist of Anthropic represents its greatest attack on free markets yet. America’s businesses must push back, writes Luigi Zingales.

How Federal Surveys Quietly Reshape Local Infrastructure Spending

In new research, Matthias Breuer and Qingkai Dong examine how federal data collection can influence local spending. They examine road surveys, showing that roads included in federal samples are more likely to be funded and those that are not often face funding and safety declines, reflecting a need for improved measurement systems.

The Jedi Blue Network Bidding Agreement Is Monopoly Maintenance

Previous plaintiffs have argued unsuccessfully that Google’s Jedi Blue agreement with Facebook is anticompetitive and illegal. The agreement grants Facebook preferential access to Google’s dominant digital advertisement system in exchange for not building competing technologies. The plaintiffs’ challenges to Jedi Blue would have been on stronger ground had they argued that Jedi Blue is compelling evidence of illegal monopoly maintenance, as occurred in Microsoft, writes Joshua B. Gray.

How Diversity Shapes Cooperation After Natural Disasters

In recent research, Pablo Balán, Agustín Vallejo, and Pablo M. Pinto examine how diversity affects cooperation between neighbors after a natural disaster. They find that more diverse neighborhoods were less likely to cooperate with each other on recovery efforts after Hurricane Harvey.

Brazil Shows That Protecting Children and Digital Competition Are Complementary Efforts

Brazil’s new child protection law has gained less global press than its new digital competition bill. However, the two are complementary efforts that demonstrate how governments must rethink how different regulatory concerns and mandates blend into one another in the digital economy.

COLUMNS

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