The Unsound Theory Behind the Consumer (and Total) Welfare Goal in Antitrust

2018 ◽  
Vol 63 (4) ◽  
pp. 455-493 ◽  
Author(s):  
Mark Glick
Keyword(s):  
Law And Economics ◽  
Consumer Surplus ◽  
Consumer Welfare ◽  
Business Strategies ◽  
Individual Level ◽  
Compensation Principle ◽  
Original Argument ◽  
The Individual ◽  
The Impact ◽  
Total Welfare

This is the first installment of a two-part commentary on the New Brandeis School (the “New Brandeisians”) in Antitrust. In this first part, I examine why the New Brandeisians are correct to reject the consumer welfare standard. Instead of arguing, as the New Brandeisians do, that the consumer welfare standard leads to unacceptable outcomes, I argue that the consumer or total welfare standard was theoretically flawed and unrigorous from the start. My basic argument is that antitrust law addresses the impact of business strategies in markets where there are winners and losers. For example, in the classical exclusionary monopolist case, the monopolist’s conduct is enjoined to increase competition in the affected market or markets. As a result of the intervention, consumers benefit, but the monopolist is worse off. One hundred years of analysis by the welfare economists themselves shows that in such situations “welfare” or “consumer welfare” cannot be used as a reliable guide to assess the results of antitrust policy. Pareto Optimality does not apply in these situations because there are losers. Absent an ability to divine “cardinal utility” from observations of market behavior, other approaches such as consumer surplus, and compensating and equivalent variation cannot be coherently extended from the individual level to markets. The Kaldor-Hicks compensation principle that is in standard use in law and economics was created to address problems of interpersonal comparisons of utility and the existence of winners and losers. However, the Kaldor-Hicks compensation principle is also inconsistent. Additional problems with the concept of welfare raised by philosophers, psychologists, and experimental economists are also considered. In light of this literature, the New Brandeisians are correct to reject Judge Bork’s original argument for adoption of the consumer welfare standard, but for deeper reasons than they have expressed thus far.

scholarly journals Natural History of NAFLD

2021 ◽  
Vol 10 (6) ◽  
pp. 1161
Author(s):  
Raluca Pais ◽  
Thomas Maurel
Keyword(s):  
Liver Disease ◽  
Natural History ◽  
Disease Progression ◽  
Specific Treatment ◽  
Alcoholic Fatty Liver ◽  
Individual Level ◽  
Close Relationship ◽  
History Of ◽  
The Individual ◽  
The Impact

The epidemiology and the current burden of chronic liver disease are changing globally, with non-alcoholic fatty liver disease (NAFLD) becoming the most frequent cause of liver disease in close relationship with the global epidemics of obesity, type 2 diabetes and metabolic syndrome. The clinical phenotypes of NAFLD are very heterogeneous in relationship with multiple pathways involved in the disease progression. In the absence of a specific treatment for non-alcoholic steatohepatitis (NASH), it is important to understand the natural history of the disease, to identify and to optimize the control of factors that are involved in disease progression. In this paper we propose a critical analysis of factors that are involved in the progression of the liver damage and the occurrence of extra-hepatic complications (cardiovascular diseases, extra hepatic cancer) in patients with NAFLD. We also briefly discuss the impact of the heterogeneity of the clinical phenotype of NAFLD on the clinical practice globally and at the individual level.

scholarly journals Harnessing testing strategies and public health measures to avert COVID-19 outbreaks during ocean cruises

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Gerardo Chowell ◽  
Sushma Dahal ◽  
Raquel Bono ◽  
Kenji Mizumoto
Keyword(s):  
Public Health ◽  
Cost Effective ◽  
Contact Network ◽  
Social Distancing ◽  
Individual Level ◽  
Health Measures ◽  
Testing Strategies ◽  
Novel Coronavirus ◽  
The Individual ◽  
The Impact

AbstractTo ensure the safe operation of schools, workplaces, nursing homes, and other businesses during COVID-19 pandemic there is an urgent need to develop cost-effective public health strategies. Here we focus on the cruise industry which was hit early by the COVID-19 pandemic, with more than 40 cruise ships reporting COVID-19 infections. We apply mathematical modeling to assess the impact of testing strategies together with social distancing protocols on the spread of the novel coronavirus during ocean cruises using an individual-level stochastic model of the transmission dynamics of COVID-19. We model the contact network, the potential importation of cases arising during shore excursions, the temporal course of infectivity at the individual level, the effects of social distancing strategies, different testing scenarios characterized by the test’s sensitivity profile, and testing frequency. Our findings indicate that PCR testing at embarkation and daily testing of all individuals aboard, together with increased social distancing and other public health measures, should allow for rapid detection and isolation of COVID-19 infections and dramatically reducing the probability of onboard COVID-19 community spread. In contrast, relying only on PCR testing at embarkation would not be sufficient to avert outbreaks, even when implementing substantial levels of social distancing measures.

The Evolution of the Role of U.S. School Nurses in Adolescent Mental Health at the Individual, Community, and Systems Level: An Integrative Review

2022 ◽  
pp. 105984052110681
Author(s):  
Ashwini R. Hoskote ◽  
Emily Croce ◽  
Karen E. Johnson
Keyword(s):  
Mental Health ◽  
Adolescent Mental Health ◽  
School Nurse ◽  
School Nurses ◽  
Integrative Review ◽  
School Nursing ◽  
Individual Level ◽  
The Individual ◽  
The Impact

School nurses are crucial to addressing adolescent mental health, yet evidence concerning their evolving role has not been synthesized to understand interventions across levels of practice (i.e., individual, community, systems). We conducted an integrative review of school nurse roles in mental health in the U.S. related to depressive symptoms, anxiety, and stress. Only 18 articles were identified, published from 1970 to 2019, and primarily described school nurses practicing interventions at the individual level, yet it was unclear whether they were always evidence-based. Although mental health concerns have increased over the years, the dearth of rigorous studies made it difficult to determine the impact of school nurse interventions on student mental health outcomes and school nurses continue to feel unprepared and under supported in this area. More research is needed to establish best practices and systems to support school nursing practice in addressing mental health at all levels of practice.

The consequences of social intolerance on non-violent protest

2015 ◽  
Vol 8 (4) ◽  
pp. 567-588 ◽  
Author(s):  
Carolin Rapp ◽  
Kathrin Ackermann
Keyword(s):  
Social Psychology ◽  
Rational Choice ◽  
Ecological Effect ◽  
Multilevel Analyses ◽  
Cultural Groups ◽  
Individual Level ◽  
The Individual ◽  
Established Democracies ◽  
The Impact ◽  
Positive Effect

This paper scrutinizes the impact of intolerance toward diverse ethnic, religious, and cultural groups on an individual’s willingness to actively engage in non-violent protest. Following new insights, we examine the individual as well as the ecological effect of social intolerance on protest behavior. Drawing from insights of social psychology and communication science, we expect that the prevalence of intolerance reinforces the positive effect of individual-level intolerance on protest participation. From a rational choice perspective, however, a negative moderating effect is expected, as the expression of opinions becomes redundant for intolerant individuals in an intolerant society. We base our multilevel analyses on data from theWorld Values Surveyscovering 32 established democracies. Our results reveal that intolerance leads to more non-violent protest participation. This relationship, however, is strongly influenced by the prevalence of intolerance in a country.

scholarly journals The Erroneous Foundations of Law and Economics

2021 ◽  
pp. 1-114
Author(s):  
Mark Glick ◽  
Gabriel A. Lozada
Keyword(s):  
Law And Economics ◽  
Consumer Surplus ◽  
Political Influence ◽  
Consumer Welfare ◽  
Pareto Efficiency ◽  
Wealth Maximization ◽  
The Status ◽  
Definition Of ◽  
Ethical Failures ◽  
The 19Th Century

The fundamental originating principle of law and economics (L&E) is that legal decisions should be (and are) based on maximizing efficiency. But L&E proponents do not define “efficiency” in the way agreed to by most economists, as Pareto Efficiency. A Pareto optimal condition is obtained when no one can be made better off without making someone worse off. Pareto Improvements are win-win changes where no losers exist. In the judicial system, however, there are always winners and losers, because under Article III § 2 of the Constitution a legal case does not exist unless there is a justiciable “case or controversy” in need of resolution. Unable to use Pareto Efficiency, L&E scholars have been forced to adopt alternative definitions of efficiency. Most L&E scholars claim to define “efficiency” based on the work of Kaldor and Hicks, but (perhaps unwittingly) instead use a definition of “efficiency” derived from the 19th century idea of consumer surplus, which encompasses L&E notions such as “wealth maximization,” and “consumer welfare” in antitrust. Neither of these alternative definitions is viable, however. Outside of L&E, the Kaldor-Hicks approach has long been recognized to be riddled with logical inconsistencies and ethical failures, and the surplus approach is even more deficient. Remarkably, virtually none of the numerous L&E textbooks even hint at such problems. Critically, all definitions of efficiency improvements in economics are biased in favor of wealthy individuals or firms, either because they are dependent on the status quo ante distribution of assets, or because they bestow large advantages on parties with political influence or who can afford to bring lawsuits quickly. Many L&E practitioners treat efficiency improvements instead as being objectively good, an error revealing that L&E is primarily motivated by its neoliberal policy agenda.

scholarly journals The Impact of Customer Contact on Collective Human Energy in Firms

2018 ◽  
Vol 44 (5) ◽  
pp. 915-952
Author(s):  
Petra Kipfelsberger ◽  
Heike Bruch ◽  
Dennis Herhausen
Keyword(s):  
Transformational Leadership ◽  
Organizational Level ◽  
Data Set ◽  
Customer Contact ◽  
Individual Level ◽  
Moderated Mediation Model ◽  
Human Energy ◽  
The Individual ◽  
High Level ◽  
The Impact

This article investigates how and when a firm’s level of customer contact influences the collective organizational energy. For this purpose, we bridge the literature on collective human energy at work with the job impact framework and organizational sensemaking processes and argue that a firm’s level of customer contact is positively linked to the collective organizational energy because a high level of customer contact might make the experience of prosocial impact across the firm more likely. However, as prior research at the individual level has indicated that customers could also deplete employees’ energy, we introduce transformational leadership climate as a novel contingency factor for this linkage at the organizational level. We propose that a medium to high transformational leadership climate is necessary to derive positive meaning from customer contact, whereas firms with a low transformational leadership climate do not get energized by customer contact. We tested the proposed moderated mediation model with multilevel modeling and a multisource data set comprising 9,094 employees and 75 key informants in 75 firms. The results support our hypotheses and offer important theoretical contributions for research on collective human energy in organizations and its interplay with customers.

Sponsored Data: Smarter Data Pricing with Incomplete Information

2021 ◽  
Author(s):  
Xiaowei Mei ◽  
Hsing Kenneth Cheng ◽  
Subhajyoti Bandyopadhyay ◽  
Liangfei Qiu ◽  
Lai Wei
Keyword(s):  
Consumer Surplus ◽  
Mobile Network ◽  
Complete Information ◽  
Consumer Welfare ◽  
High Definition ◽  
Mobile Data ◽  
Data Intensive ◽  
Data Consumption ◽  
New Business ◽  
The Impact

With the development of data-intensive internet services, the world has witnessed explosive growth in mobile data consumption during the last couple of years. The upcoming generation of 5G-capable phones and networks will continue and even accelerate that process. At the same time, consumers are becoming more conscious about their data consumption because their monthly caps of mobile data plans can be easily exhausted by premium content, such as high-definition videos and virtual-reality games. In response, the mobile network operators (MNOs) have proposed a new business model, the so-called sponsored data plans, to subsidize consumers by transferring at least part of the data bills from consumers to content providers. Although industry practitioners claim that sponsored data plans increase consumer welfare, our analysis reveals that the impact of sponsored data on consumer surplus depends crucially on whether the MNO has complete information of the consumers’ valuation of mobile data. Our analysis helps provide a clearer picture of the impact of sponsored data on consumer surplus while reconciling the conflicting views from scholars, digital rights groups, and the network carriers.

Trust, Ethnicity and Integrity in East Africa: Experimental Evidence from Kenya and Tanzania

2017 ◽  
Vol 2 (1) ◽  
pp. 88-123 ◽  
Author(s):  
Dominic Burbidge ◽  
Nic Cheeseman
Keyword(s):  
Ethnic Diversity ◽  
Negative Impact ◽  
Common Knowledge ◽  
Individual Level ◽  
Trust Games ◽  
Negative Effect ◽  
Experimental Games ◽  
The Individual ◽  
The Impact ◽  
First Time

AbstractPolitical economy comparisons of Kenya and Tanzania have often found the political salience of ethnicity to be far higher in the former than the latter, with a negative impact on intercommunal trust. This difference has tended to be explained on the basis of the different kinds of leadership that the two countries experienced after independence. However, these findings have typically been demonstrated using aggregate or survey data. This paper assesses the salience of ethnicity at the individual level for the first time, deploying monetized two-round trust games in urban Kenya and Tanzania. The experimental games isolate the comparative impact of common knowledge of ethnicity and integrity among a quasi-random selection of 486 citizens. Verifying previous findings, we observe higher levels of trust and trustworthiness in Tanzania as compared with Kenya. Further, in comparison with Kenya, any shared knowledge of ethnic identities in Tanzania leads players to transfer fewer resources, while common knowledge that both players are “honest” led to higher transfers there than in Kenya. These results provide robust evidence of higher levels of trust in Tanzania, and of the negative effect in that country of common knowledge of ethnicity on levels of cooperation. The findings demonstrate the way in which political context can shape the impact of ethnic diversity, and encourage further experimental research that looks at the intersubjective dynamics of social cooperation.

How much is a calorie worth? A study of willingness to pay for calorie labels in restaurant menus

2019 ◽  
pp. 1-24
Author(s):  
SANA RAFIQ
Keyword(s):  
Willingness To Pay ◽  
Well Being ◽  
Economic Benefits ◽  
Individual Level ◽  
Additional Information ◽  
Health Related ◽  
The Individual ◽  
Types Of Information ◽  
Caloric Consumption ◽  
The Impact

AbstractWe asked individuals about their willingness to pay (WTP) either: (1) for a mandate requiring restaurants to post calorie information on their menus; or (2) to avoid such a mandate. On average, more people were in in favor of the mandate and were willing to pay four times more than those who were against it, thereby leading to a Kaldor–Hicks improvement from this policy. To ensure robustness, we tested the impact of providing three types of information during individuals’ WTP determinations: (1) visual examples of the proposed calorie labels; (2) data on their effectiveness at the individual level; and (3) data on their wider social and economic benefits. For those in favor, providing a simple visual of the label had no impact on WTP. Data on the individual effectiveness of the labels increased the WTP, while evidence on broader obesity reduction and economic benefits reduced it. For opponents, WTP did not change with provision of additional information except when provided with information on social and economic benefits. Under this condition, the opponents increased their WTP 12-fold to avoid a mandate of this policy. Finally, we measured individual well-being under this policy and found directionally similar results, confirming a net improvement in aggregate welfare. Our results suggest that messaging that focuses on private benefits (providing calorie information so that individuals can effectively choose to reduce excessive caloric consumption) rather than wider public benefits (reduction in overall health-related costs and obesity) is more likely to be effective.

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