The Role of the State

The following is an excerpt from Herbert Hovenkamp's new book, “Tech Monopoly,” now out at MIT Press.

Thomas Malthouse explores the skewed financial models that lead American railroads to underinvest in maintenance and profitable expansion, producing delays, derailments, and environmental catastrophes such as those that occurred in East Palestine, Ohio, in 2023.

In new research, Felix Montag, Alina Sagimuldina, and Christoph Winter study the impact of mandatory price disclosure (MPD) for sellers in the German retail fuel market to determine under what market conditions MPD can reduce prices for consumers.

Sangyun Lee reviews the 2021 merger between Korean Air and Asiana Airlines, which was promoted by the government despite warnings from the majority of experts deeming it obviously anticompetitive and harmful to consumers. He finds that the merger is a paragon of how, under institutional constraints, the rational choices of actors and organizations can collectively lead to irrational, suboptimal outcomes.

Jake Goidell argues that the ongoing NCAA lawsuit settlements will not create a lasting solution unless athletes form a players association that is involved in determining industry-wide decisions.

Colleen Honigsberg and Robert J. Jackson, Jr. write that Exxon Mobil’s decision to sue its own investors over a shareholder proposal threatens to enervate an admittedly imperfect but ultimately valuable mechanism that provides shareholder feedback to corporate managers and helps both parties negotiate better governance outcomes.

Randy Priem reviews the current discussions about fortifying the independence of determination committees deciding whether a credit event took place for single-name credit default swaps. He offers several possible strategies.

Based on a new report from the Institute for Local Self-Reliance, John Farrell argues that the monopoly granted to private, investor-owned electric utilities by state governments is preventing the United States from accessing cheaper, cleaner, and more dependable electricity.

Diana Moss and Jason Gold write that the major private antitrust lawsuit involving how the National Collegiate Athletic Association governs compensation for college student athletes overreaches by remaking the model of college sports in the United States. Instead, the paradigm shift in college athletics should be deliberated and decided through the legislative process.

In part II of a two-part series, Michael A. Carrier analyzes the merits and strengths of the government’s recent lawsuit against Live Nation and its subsidiary, Ticketmaster, for monopolizing the live entertainment market. See here for part I.