The Dubious Antitrust Argument for Breaking Up the Internet Giants

Recent calls for using the antitrust laws to break up the large Internet giants are misplaced for a number of reasons. First, similar efforts against oil, tobacco, motion-picture, and telecommunications monopolies have not proved to be beneficial to economic welfare. Second, the failure to break up Microsoft using Section 2 has not proved to be a mistake: competition in operating systems and Internet browsers has flourished recently. Finally, a Section 2 case against Amazon, Facebook, or Google could not succeed if it focused on the digital advertising market. Even in a case based on market power on the other side of their platforms, a structural remedy—a break-up—would not improve economic welfare in the long run.

     

The FCC’s Net Neutrality Decision and Stock Prices

More than a year after a court invalidated its “net neutrality” rules on broadband Internet service providers (ISPs), the Federal Communications Commission (FCC) decided to extend public-utility (Title II) regulation on broadband services. This paper uses traditional event analysis of the movements in the values of major communications and media companies’ equities at key moments in the FCC’s path to this decision to estimate the financial market’s assessment of the likely effects of regulation on ISPs, traditional media companies, and new digital media companies. The results are surprising: the markets penalized only three large cable companies to any extent, and even these effects appear to have been short-lived. The media companies, arguably the intended beneficiaries of the regulations, were unaffected.     

IS THERE PROGRESS IN ENVIRONMENTAL POLICY?

Environmental reformers often seek to impose partial, market-like mechanisms into costly, complex new environmental statutes. These mechanisms are likely to offset only a small fraction of the loss in economic welfare created by the rest of the legislation. A far better approach is to write cost-benefit requirements directly into all new legislation. Such requirements, when enforced by the courts, are likely to yield far greater improvements in economic welfare than are the weak market mechanisms found in new statutes such as the 1990 Clean Air Act.     

Preferences for compensation options

An analysis of preferences for compensation options was performed for a sample of employees in one organization. The organization was sampled at two points in time, approximately one year apart. The first sample was a stratified random sample of managerial and nonmanagerial employees (N = 101). The second sample contained a repeat sample of 48 individuals and a random sample of 80 individuals for a total (N = 128). The sampling procedure allowed for both cross-sectional and longitudinal analysis. The analysis of compensation preferences was based on the set of compensation items currently available to all employees. The results indicated a marked stability of preferences for the longitudinal sample (N = 48), and a systematic crosssectional variance in preferences at both time periods based on age and salary levels of employees. The results of this research lend credence to both cafeteria-style compensation programs and portable pensions.     

Leisure and work ethics and locus of control

Abstract

Equivocal findings regarding the relationship between attitudes toward leisure and the extent to which people feel in control of their own fate led to the consideration of possible mediating influences. The current study was an attempt to examine the relationship between locus of control and the affective domain of leisure attitude, or leisure “ethic,” while controlling for the influence of work ethic. The possibility of differences between males and females and students and nonstudents led to four separate subgroup analyses. Results indicated that of the four groups, only female students showed a substantial relationship between locus of control and leisure ethic. In this group, leisure ethic was associated with an external locus of control, the tendency to regard the control of life's circumstances as lying outside oneself. In none of the groups was the influence of work ethic great enough to make an appreciable difference in the relationship between locus of control and leisure ethic. The group differences were discussed in terms of sex‐role orientations and career aspirations.     

The intercultural communication cultural immersion experience: Preparing leaders for a global future

The dynamics of globalization mean we face a reality wherein leaders are called upon to communicate effectively in cultural situations unfamiliar to them. This situation brings new challenges for communication and leadership educators. Our article describes a cultural immersion experience called The Cagli Project, where communication and leadership students learn effective intercultural communication skills for leadership formation while studying in Italy. The philosophical and experiential aspects of the program are described along with leadership outcomes. The article ends with a discussion of the transferability of this model to alternative programs. Perhaps nothing has had a more profound effect on human communication and hence leadership in the past half century than the movement of people around the globe and the growing diversity of world society. Globalization is the mantra that seems to be driving much that is new in higher education today. It has its roots in the “global economy” and seems most relevant to the business disciplines, but there is a sub‐text to globalization that resonates throughout all our institutions, and that is diversity (Caputo, 2011).     

Antitrust in High-Tech Industries

Recent economic growth has been led by high-technology industries (See Jorgenson, Ho & Stiroh (2005) for a summary of the research on the recent acceleration of productivity growth). Many firms in these industries have achieved a dominant market position, thereby attracting the attention of competition authorities, often resulting in major monopolization cases. Unfortunately, this attention has not resulted in improved market outcomes. In this paper, we evaluate the effect of Section 2 Sherman Act cases brought against IBM, AT&T, and Microsoft. We conclude that these cases had limited effect on consumer welfare because they did not stimulate entry or innovation. In these industries, competition authorities cannot expect to promote simply an expansion of output and lower commodity prices; rather they should focus their remedies on promoting innovation—new products that replace or compete with the dominant firm’s products.     

What is the role of perceived leadership capacity in presidential politics?

The relevance of leadership models in presidential leadership, and principally the role of perceived leadership in presidential election years, is an area of study with limited development but increasing importance. This study explores the relationship between young voters' leadership assessment of presidential candidates, Barack Obama and John McCain, and their reports of voting behavior during the 2008 presidential election. Leadership perceptions were collected from 812 respondents prior to the election. Results indicate that candidate leadership assessments have a significant effect on candidate preference after controlling for the impact of party identification and self‐perceived political efficacy. Further, political efficacy significantly impacted respondents' intent to vote in the election after controlling for these same variables. Party affiliation produced significant differences across the political ideology, leadership ratings, political efficacy, and likelihood of voting variables. The study concludes with a discussion of the implications as they pertain to political leadership.     

The long-run effects of copper-loop unbundling and the implications for fiber

Policies mandating unbundling of copper telecommunications networks have now been in place for more than 15 years, and it is thus becoming possible to study their long-run effects. This paper reviews the existing evidence on the effects of copper unbundling, and presents new empirical results based on regression analyses of broadband penetration in OECD countries from 2001 to 2010. The results show that the long-run effect of copper unbundling on household broadband penetration rates is negative, a finding which is consistent with previous research, including with research suggesting that copper unbundling has slowed the deployment of FTTP infrastructures, especially in Europe. Based on an analysis of the similarities and differences between the unbundling of copper networks and fiber networks, the paper concludes that mandated unbundling of fiber networks would likely deter deployment of Next Generation Access networks (NGAs).