The Role of the State

Digital marketplaces make comparing credit lending options easier for potential borrowers. However, Jeromee "JJ" Johnson cautions that online platforms may be turning comparison itself into a signal to lenders—at a cost to applicants.

New research by Hosein Maleki, Mahsa Kaviani, Simi Kedia, and Shay Pourvosoughi shows that women-owned firms are less likely to get a second chance after filing for bankruptcy and that the gap between male- and female-owned firm filings widens when courts are overloaded.

Using a proprietary dataset, Dave Jochnowitz, Steven Singer, and Mona Birjandi analyze trends in the Securities and Exchange Commission’s whistleblower program. They find that sanctions have concentrated in a select few violation categories, raising the possibility that the program is structurally guiding enforcers to focus on certain violation types to the neglect of others.

In new research, Anik Bhaduri discusses how current antitrust enforcement is insufficient to address the economic influence of Big Tech companies. He argues that their market power stems from their privileged position on financial markets and their unique organizational structures, and antitrust reforms should therefore be complemented with reforms to corporate and securities law to effectively address the concentration of private power.

The antitrust agencies’ revival of the Robinson-Patman Act risks undercutting legitimate business practices that benefit consumers. However, there is a role the Act can play in protecting small businesses, writes Darren Tucker.

In new research, Luca Macedoni and Ariel Weinberger argue that large firms are more likely to lobby in favor of strict industry regulations when they can reduce competition by imposing high fixed costs on smaller, less-profitable firms.

In February, the Federal Trade Commission settled with pharmaceutical benefits manager (PBM) Express Scripts. The FTC had sued Express Scripts and two other large PBMs under the long dormant Section 5 of the FTC Act, which targets “unfair methods of competition.” The settlement suggests that the FTC may succeed in addressing the convoluted contracts between PBMs, drug manufacturers, health insurers, and employers that drive up drug prices for Americans. It also opens unchartered territory for antitrust enforcement and the limits of Section 5, argue Fiona Scott Morton and Mariah Smith.

In new research, Christos Makridis and Andrew Johnston find that industries exposed to generative AI are seeing an increase in production, employment, and wages. However, the majority of AI-driven revenue growth is channelled back to capital as profits, rather than to workers.

In new research, Ido Baum, Leszek Balcerowicz, Jakub Karnowski and Andrzej Rzońca assess how Poland achieved economic growth with a populist government. They argue that the economic success is misleading and Poland’s leading party passed harmful policies that affect the country’s long-term growth opportunities. 

In new research, Louis Pape and Michelangelo Rossi find that the European Union’s Digital Markets Act’s prohibition on self-preferencing had little effect on the popularity of Google Maps relative to competitors. User preference for the incumbent service appears to outweigh frictional barriers to access.