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on Law and Economics |
| By: | Jens-Uwe Franck |
| Abstract: | This paper analyses three routes for the formation of market-opening rules: competition enforcement, legislation, and UK-style market investigation. Using case studies on facilitating market access for innovative payment services, we identify essential features and limitations of the different modes of rulemaking. The interrelation between them is explored, revealing the merits of having them available in parallel. |
| Keywords: | competition policy, institutional design, competition law, regulation, market investigation, open banking, fintech, big tech, payment services |
| JEL: | K21 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2022_367&r= |
| By: | Javier D. Donna (University of Florida/The Rimini Centre for Economic Analysis); Anita N. Walsh (TBA) |
| Abstract: | In 2020, an antitrust lawsuit was filed against the Pork Integrators alleging a §1 Sherman Act violation. At the center of the Lawsuit, there is an alleged exchange of atomistic information about the Pork integrators’ operations using Agri Stats, Inc. as a clearinghouse. We use the Supreme Court benchmark in American Column & Lumber to discuss two questions that arise from the Lawsuit. The first is whether the association of Pork Integrators and Agri Stats, Inc. resulted in the restraint of interstate commerce, the main specific issue at stake in the pork Lawsuit. The second is whether information-exchange agreements using clearinghouses like Agri Stats, Inc. lessen competition and offend United States antitrust law, a more general issue beyond the pork Lawsuit. We find that there appears to be ample evidence in the Lawsuit to merit prosecution regarding both trade restraints and information-sharing agreements. We conclude by discussing the role of the Agencies in setting the standards in informationexchange agreements. |
| Keywords: | Antitrust, Price-fixing, Competition, Information Sharing, Cartel, Pork Industry. |
| JEL: | K21 L12 L13 L41 L42 L66 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:175&r= |
| By: | Alessandra Foresta |
| Abstract: | This work evaluates the role of judges' gender on jury trials verdicts in the US state of North Carolina. My identification strategy is based on judges' rotation across districts and fixed effects. The results indicate that, in trials presided by female judges, juries are more likely to express guilty verdicts. I implement a series of robustness checks (different models' specifications, defendants' characteristics, district sizes, judges' types, judges' experience and workloads) and a series of heterogeneity checks (judges' characteristics, types of crimes and jurors' gender). Finally, I discuss the possible mechanisms behind these findings and I explore the impact of the jury selection process, the role of judges' toughness and the attitudes of women towards courts and sentencing. |
| Keywords: | Gender, Judge, Trials behaviours |
| JEL: | K10 K40 J16 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:22/04&r= |
| By: | Silano, Filippo |
| Abstract: | The increasing presence of the revolving door across several dimensions of statecraft has prompted the introduction of laws addressing the phenomenon's risks. Focusing on executive branches in charge of issuing and managing government debt - debt management units (DMUs) -, this article delivers a case study assessing the effectiveness of revolving door policies, with the overarching purpose of designing regulatory solutions. In government debt management, the revolving door denotes the transition of employees working at the dealers to DMUs, and vice versa. Dealers are financial institutions either appointed by the domestic DMU to participate in auctions of government securities, or exclusively distributing bonds in the secondary market. Drawing on a comparative legal analysis across eight OECD countries and career data from a sample of public debt managers, this study provides empirical evidence that despite legislations curbing the revolving door are in force, the dynamic is free to flow. Reasons are lack of effective monitoring, credible enforcement mechanisms and adequate ethical culture. Addressing shortcomings, policy proposals advocate the establishment of independent oversight bodies endowed with sanctioning power, and measures enhancing the transparency of public officials' career moves. Identifying and plugging loopholes in the framework in force, this study aims at steering policymakers through the ongoing process of modernising conflict of interest regulation. |
| Keywords: | revolving doors,conflicts of interest,public integrity,government debt management,effectiveness of policies,enforcement,regulatory governance |
| JEL: | K10 K23 K42 H63 H83 P16 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ilewps:63&r= |
| By: | Henrika Langen |
| Abstract: | This study assesses the effect of the #MeToo movement on different quantifiers of the 2015-2020 judicial opinions in sexual violence related cases from 51 U.S. courts. The judicial opinions are vectorized into bag-of-words and tf-idf vectors in order to study their development over time. Further, different indicators quantify to what extent the judges use a language that implicitly shifts some blame from the victim(s) to the perpetrator(s). These indicators measure how the grammatical structure, the sentiment and the context of sentences mentioning the victim(s) and/or perpetrator(s) change over time. The causal effect of the #MeToo movement is estimated by means of Difference-in-Differences comparing the development of the language in opinions on sexual violence and other interpersonal crime related cases as well as a Panel Event Study approach. The results do not clearly identify a #MeToo-movement-induced change in the language in court but suggest that the movement may have accelerated the evolution of court language slightly, causing the effect to materialize with a significant time lag. Additionally, the study considers potential effect heterogeneity with respect to the judge's gender and his/her political affiliation. The study combines causal inference with text quantification methods that are commonly used for classification as well as with indicators from the fields of sentiment analysis, word embedding models and grammatical tagging. |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2209.00409&r= |
| By: | Ratul Das Chaudhury (Postdoctoral Research Fellow, Centre for Global Business, Monash Business School); Chongwoo Choe (Director, Centre for Global Business, and Professor, Department of Economics, Monash Business School) |
| Abstract: | Australia’s Privacy Act 1988 is under review with a view to bringing Australia’s privacy laws into the digital era, more in line with the European Union’s General Data Protection Regulation (GDPR). This article discusses how the GDPR can be refined and standardized to be more effective in protecting privacy in the digital era while not adversely affecting the digital economy that relies heavily on data. We argue that an ideal data policy should be informative and transparent about the potential privacy costs while giving consumers a menu of opt-in choices into which they can self-select themselves. |
| Keywords: | digital privacy, GDPR, opt-in |
| JEL: | K24 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2022-19&r= |
| By: | Melissa Rubio-Ramos (University of Cologne) |
| Abstract: | This paper documents the emergence of a race gap in incarceration after the abolition of slavery in the U.S. Counties that relied more on slave labor incarcerated more African Americans, with no comparable effects for whites. An increase of slave reliance by 10% increases black incarceration rates by 1.8-per-1,000. This effect is associated with an increased use of prison labor. Consistent with this, I show that arrests increase before cotton harvesting and incarceration declines after exogenous shocks that decrease the demand for labor. I find no evidence for supply-side mechanisms, according to which former slaves commit more crimes. |
| Keywords: | Slavery, US, Incarceration |
| JEL: | J15 J47 K31 N31 N91 N92 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:195&r= |
| By: | Prendergast, Canice |
| Abstract: | We study LAPD police reforms after the Rampart scandal, when formal oversight rose discretely in 1998, and then fell in late 2002. We offer a simple model to interpret how police behavior is affected by changed accountability to the public. We show how officers responded by a practice they labeled "drive and wave". The arrest-to-crime rate fell 40% after accountability to the public rose, then rebounded to its original level when accountability fell. For the "victimless" crimes of narcotics and prostitution, arrests fall almost 50% and then rebound. No such effects arise for the Los Angeles Sheriff Department, even for those stations surrounded by areas policed by the LAPD. We also see no effects on arrests made by other agencies within the LAPD's jurisdiction. This impact was greatest in predominantly Hispanic neighborhoods, and felt least in White communities. Other behavioral responses - use of force and street stops - tell a similar story. We argue that much of the response may be attributable to an imbalance between oversight done by suspects compared to that done by the victims of crime. We also document an impact on homicides. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cbscwp:306&r= |
| By: | Salvatore Capasso; Rajeev K. Goel; James W. Saunoris |
| Abstract: | Studying a relatively under-researched aspect in economics, this paper examines the nexus between corruption and academic freedom. Our main hypothesis is that greater corruption undermines academic freedom and we test this hypothesis using cross-national data for 104 nations over the years 2012 to 2018. Our results support the main hypothesis, and this finding also generally holds across alternative aspects of academic freedom. Another contribution of this work lies in dissecting the direct and indirect (through corruption) effects of various drivers of academic freedom. Finally, additional insights are gained via considering different dimensions of academic freedom and how they are (qualitatively and quantitatively) impacted by corruption. |
| Keywords: | academic freedom, corruption, government, education, democracy, mediation analysis |
| JEL: | K42 H52 I21 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9890&r= |
| By: | Brada, Josef C.; Iwasaki, Ichiro |
| Abstract: | We undertake a meta-analysis of 1296 estimates of the effect of target country legal environments on cross-border mergers and acquisitions (CBMAs) compiled from 60 published studies. Although these studies provide effect estimates that are statistically significant, none of the legal variables considered, save civil law, has an effect on either CBMA intensity or the CBMA premium that is large enough to be meaningful. Thus, the studies fail to provide support for legal origins theory or for theories based on cultural distance as explanations for CBMA activity. Studies of the CBMA premium are plagued by inadequate statistical power, by unexplained interstudy differences in effect and by publication-selection bias. Based on our meta-analysis, we suggest reasons why the empirical evidence fails to support theories that have wide acceptance. |
| Keywords: | foreign direct investment, mergers and acquisitions, legal environment, meta-analysis, capital flows |
| JEL: | F21 F23 G32 G34 K22 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2022-04&r= |
| By: | Mario Lackner; Hendrik Sonnabend (University of Hagen) |
| Abstract: | We use data from top-level soccer to examine determinants of individual misbehaviour in team contests. Our estimates indicate a significant positive and non-linear relationship between a player’s age and (relative) ability on the one hand and the tendency to misbehave on the other. These findings are consistent with Social Learning Theory in that the group of high-status players may has learned that the consequences of misconduct are low and manageable. Furthermore, we demonstrate that misbehaviour is costly to both the players and their teams. |
| Keywords: | misconduct, contests, status, soccer |
| JEL: | J32 J24 K42 L83 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:jku:econwp:2022-11&r= |
| By: | Caio de Oliveira (OECD); Carl Magnus Magnusson (OECD); Tugba Mulazimoglu (OECD) |
| Abstract: | This paper provides an overview of developments in non-financial corporate bond markets over the past two decades with respect to their size and credit quality, as well as trends related to insolvency and restructuring. It then explores the role of bondholders in corporate governance, both in normal times and in times of financial distress, and the governance implications of longstanding increases in bond financing by the non-financial sector. In particular, challenges related to bondholder rights, corporate disclosure, the responsibilities of corporate boards, institutional investors and insolvency are discussed. |
| Date: | 2022–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dafaae:23-en&r= |
| By: | KO Ryuya; OHASHI Hiroshi |
| Abstract: | This paper examines the economic consequences of code-sharing agreements (CSA) in the airline market. CSA can be viewed as a vertical contract between airlines, which sometimes co-own the code-shared flights. Our structural model aims to understand how and to what extent CSA distorts market competition among airlines. With an application to Japanese domestic airlines, structural estimates of our demand and supply models indicate that CSA would significantly lessen market competition, by sharing increased revenues from raised fares. We further extend our model to consider endogenous product quality. Although the loss of consumer welfare due to CSA is alleviated by enhanced product quality, the anti-competitive effect of CSA is persistent. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:22080&r= |
| By: | Arnoud V. den Boer (University of Amsterdam); Janusz M. Meylahn (University of Twente); Maarten Pieter Schinkel (University of Amsterdam) |
| Abstract: | We examine recent claims that a particular Q-learning algorithm used by competitors ‘autonomously’ and systematically learns to collude, resulting in supracompetitive prices and extra profits for the firms sustained by collusive equilibria. A detailed analysis of the inner workings of this algorithm reveals that there is no immediate reason for alarm. We set out what is needed to demonstrate the existence of a colluding price algorithm that does form a threat to competition. |
| Keywords: | keywords |
| JEL: | C63 L13 L44 K21 |
| Date: | 2022–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20220067&r= |
| By: | Nicolas Frémeaux (LEMMA - Laboratoire d'économie mathématique et de microéconomie appliquée - Université Paris-Panthéon-Assas); Marion Leturcq (INED - Institut national d'études démographiques) |
| Abstract: | This paper examines wealth accumulation among couple-headed households and investigates changes in within-household inequality over time and across couple statuses. Going beyond previous research that mostly studies wealth accumulation within marriages by comparing married with unmarried individuals, we consider the legal statuses of couples (cohabitation, civil union, and marriage) and property regimes (community and separate property). We apply multivariate regression analysis to high-quality longitudinal data from the French wealth survey (2015–2018) and find no differences in net worth accumulation between couples' legal statuses when property regimes are not accounted for. However, couples with a separate property regime accumulate more wealth than couples with a community property regime, and married couples with a separate property regime drive this association. Our results show that the gender wealth gap is larger for couples with a separate property regime, but it is partially compensated by accumulated wealth. Our results highlight the importance of legal statuses and property regimes in explaining the dynamics of between- and within-household inequality in France, specifically within a context of increasingly diversified marital trajectories. |
| Keywords: | wealth,gender inequality,marriage,marital property regime,civil union,France |
| Date: | 2022–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03763819&r= |
| By: | Long, Vicky (The Ratio Institute); Bjuggren, Per-Olof (The Ratio Institute) |
| Abstract: | This paper decomposes the factors that govern the access and sharing of machine-generated industrial data in the artificial intelligence era. Through a mapping of the key technological, institutional, and firm-level factors that affect the choice of governance structures, this study provides a synthesised view of AI data-sharing and coordination mechanisms. The question to be asked here is whether the hitherto de facto control—bilateral contracts and technical solution-dominating industrial practices in data sharing—can handle the long-run exchange needs or not. |
| Keywords: | Artificial intelligence (AI); governance structure; intellectual property rights (IPRs); data trade; industrial data |
| JEL: | D23 K10 K24 L14 L86 O30 |
| Date: | 2022–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0355&r= |