The Equitable Economy

Why Musk Is Right About OpenAI

Luigi Zingales argues that Elon Musk is right to sue OpenAI and CEO Sam Altman, given the economic principles at stake.

History Provides Inspiration for a Stronger Alliance Between Labor and Antimonopoly Advocates

Although the antimonopoly neo-Brandeisians and the labor movement share many goals, including a desire to reduce the power of big business, significant tensions exist, such as labor’s past support for mergers when they advance the ability of workers to unionize. Kate Andrias traces the history of labor’s relation with antitrust to show that, despite historical and contemporary tensions, there have also been deep connections between the two movements that show how they can better complement each other in the future.

How the Democratic Party Lost Less-Educated Voters

In a new paper, Ilyana Kuziemko, Nicolas Longuet-Marx, and Suresh Naidu point to a shift in the Democratic Party’s economic policy, from predistribution to redistribution, as one of the reasons why it has lost less-educated voters.

Investors Should Engage With Firms They Want To Go Green, Not Divest

How can investors use capital markets to encourage emissions reductions? In new research, Matthew E. Kahn, John G. Matsusaka, and Chong Shu examine whether public pension funds are more effective in mitigating pollution when they divest from fossil fuel companies or actively engage their management.

The Fight for the Purpose of the Firm

The following is an excerpt from Kyle Edward Williams' new book, "Taming the Octopus: The Long Battle for the Soul of the Corporation," now out at W. W. Norton & Company.

Why Business Should Be More Prosocial, and Ten Guidelines for How

Business and economic thought instituted at least since the Reagan revolution in the United States have promoted firms’ narrowly self-interested, profit-maximizing conduct even at the expense of consumers and workers. This paradigm leads to social distrust and insufficient cooperation. Steven C. Salop explains this distortion and proposes 10 guidelines by which firms can self-moderate their behavior to produce prosocial outcomes.

Confidentiality Agreements Can Act Like Noncompetes

Noncompete agreements, which impose contractual limits on an employee’s ability to work after leaving a job, are regulated or banned in all states. But employers can potentially get around legal limitations on noncompetes by asking workers to sign confidentiality agreements that have similar functional effects. In a new article, Camilla A. Hrdy and Christopher B. Seaman provide empirical evidence that a significant number of employment agreements contain broad confidentiality provisions that place noncompete-like restrictions on workers.

Influencers Work in Opacity and Need Professional Organization

Excerpted from THE INFLUENCER INDUSTRY: The Quest for Authenticity on Social Media © 2023 by Emily Hund. Reprinted by permission of Princeton University Press.

Firms Sharing Board Members Can Collude To Reduce Worker Mobility

In new research, Taylor Begley, Peter Haslag, and Daniel Weagley find that when firms begin sharing a common director, there is a significant reduction in the number of employees that switch jobs between the two companies. The reduction is largest when the firms compete in the same labor market and for those employees who are most costly for firms to replace. The results show the link between overlapping board members and anticompetitive labor practices is a surprisingly widespread phenomenon.

Mandatory Audits Do Not Provide the Protection Governments Think They Do

In new research, Matthias Breuer, Anthony Le, and Felix Vetter find that when companies are required by the government to seek a third-party financial audit, they turn to lower quality auditors.  As a result, the accounting industry grows, but touted benefits for markets and corporate stakeholders appear elusive.

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