|July 1994 - Present||Research Associate, National Bureau of Economic Research|
|July 1993 - Present||Professor of Economics, Department of Economics, UC Berkeley and Richard Jennings Professor, Berkeley Law|
- Industrial Organization
- Antitrust Law and Policy
Department of Economics #3880
University of California
Berkeley, CA 94720-3880
School of Law (Boalt Hall)
University of California
Berkeley, CA 94720-7200
Recent Works (2)
Competition Policy for Exclusionary Pricing: Experimental Evidence (2018)
We study the effects of above-cost exclusionary pricing and the efficacy of threepolicy responses. We run a series of experiments involving a monopoly incumbentand a potential entrant. Our experiments show that under a laissez-faire regime,the ...
Conservatism and Switcher's Curse American Law and Economics Review (2017)
This paper formally models the virtues of Edmund Burke's conservatism, characterizes the optimal level of conservatism, and applies the model to management, law, and policy. I begin by introducing ``switcher's curse,'' a trap in which ...
The Actavis Inference: Theory and Practice Rutgers University Law Review (2015)
In FTC v. Acta vis, Inc., the Supreme Court considered "reverse payment" settlements of patent infringement litigation. In such a settlement, a patentee pays the alleged infringer to settle, and the alleged infringer agrees not ...
Actavis and Error Costs: A Reply to Critics Faculty Scholarship (2014)
The Supreme Court’s opinion in Federal Trade Commission v. Actavis, Inc. provided fundamental guidance about how courts should handle antitrust challenges to reverse payment patent settlements. In our previous article, Activating Actavis, we identified and ...
Cartels By Another Name: Should Licensed Occupations Face Antitrust Scrutiny? University of Pennsylvania Law Review (2014)
It has been over a hundred years since George Bernard Shaw wrote that "[a]ll professions are a conspiracy against the laity." Since then, the number of occupations and the percentage of workers subject to occupational ...
Overtaking The American Illness: Essays on the Rule of Law (2012)
To maximize growth, law and policy should maximize the profitability of innovation. Developing an innovative idea requires combining it with capital (the double-trust dilemma) and labor (the collaborators’ dilemma), which is what business ventures do. ...
Clearings and Thickets The Ratio Research Colloquium on Property Rights, the Conditions for Enterprise and Economic Growth; the Comparative Law and Economics Forum (2011)
Abstract: Intellectual property rights create temporary monopoly power for innovators. Monopoly pricing transfers wealth to the innovator from the innovations buyers -- consumers, producers, and other innovators. For innovations mostly used in consumption and production, ...
UC system: layoffs, not pay cuts Los Angeles Times: Opinion (2009)
The University of California should should respond to the financial crisis of 2009 by reducing employment, not salaries. Employment should be reduced by eliminating inferior programs and activities remote from the core mission of teaching ...
Journals at bepress: New Twists on an Old Model Learned Publishing (2008)
In recent years academic journal publishers have explored a variety of new business models. The Berkeley Electronic Press (bepress), founded by professors in 1999, now publishes 39 electronic-only journals. bepress’s own model rests on three ...
The Savings Impact of College Financial Aid The B.E. Journal of Economic Analysis & Policy (2007)
When parents save money for their children's college education, a portion of their savings is later taken away in the form of reduced eligibility for college financial aid. We estimate the long-run impact of this ...
The American Airlines Case: A Chance to Clarify Predation Policy Department of Economics, UCB (2002)
Predation occurs when a firm offers consumers favorable deals, usually in the short run, that get rid of competition and thereby harm consumers in the long run. Modern economic theory has shown how commitment or ...
Contributions to Books (1)
Featured Works (4)
Voting as a Rational Choice: Why and How People Vote to Improve the Well-Being of Others Rationality and Society (2007)
For voters with "social" preferences, the expected utility of voting is approximately independent of the size of the electorate, suggesting that rational voter turnouts can be substantial even in large elections. Less important elections are ...
The Accident Externality from Driving Journal of Political Economy (2006)
We estimate auto accident externalities (more specifically insurance externalities) using panel data on state-average insurance premiums and loss costs. Externalities appear to be substantial in traffic-dense states: in California, for example, we find that the ...
Holdups, Standard Breach Remedies, and Optimal Investment American Economic Review (1996)
In bilateral trading problems, the parties may be hesitant to make relationship-specific investments without adequate contractual protection. We postulate that the parties can sign noncontingent contracts prior to investing, and can freely renegotiate them after ...
Antitrust, Industrial Organization, and Competition Policy (20)
Freedom to Trade and the Competitive Process Oxford Handbook of International Antitrust Economics (2013)
Although antitrust courts sometimes stress the competitive process, they have not deeply explored what that process is. Inspired by the theory of the core, we explore the idea that the competitive process is the process ...