VOX, CEPR Policy Portal

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New law for a Mandatory Bargaining Code has been brought in Australia to put in force a choice that publishers can be compensated to be used of news content material by giant electronic platforms. This reflects a policy view that the giant disparity in bargaining power between systems and personal publishers requires positive intervention to support caliber journalism and news production. This column argues that the Code as formulated by the ACCC has beautiful houses according to bargaining theory including using ‘final offer arbitration’ as a backstop; it also leaves implementation of the regulation to the events involved, not to an agency plagued by excessive uneven guidance. At a time when the design of law for ‘gatekeeper’ platforms is very much top of the agenda, this ‘decentralised regulation’ strategy can be judicious as a part of a menu of chances in varied settings. On 23 March 2020, the Federal Reserve introduced that it would buy investment grade corporate bonds, and on 9 April set the quantity at up to $250 billion and accelerated the acquire to junk bonds.

This column shows that these interventions succeeded in stabilising credit markets: prices lifted and dealing spreads narrowed. However, emergency lending powers provide an inadequate basis for Federal Reserve operations in corporate bonds. In light of these findings, congressional authority to buy and to sell corporate bonds alongside US Treasuries would help to align Federal Reserve operations with what has become a capital market focused monetary systemConcentration measures resembling the post merger Herfindahl Hirschman index as well as the merger prompted change in the index are often key determinants in the review of horizontal mergers by contention companies and courts. This column experiences whether the magnitude of the efficiencies required for a merger not to hurt consumers may be associated with the change and the level of the Herfindahl Hirschman index. On the premise of theoretical evaluation substantiated by empirical facts, it finds that while the critical level of efficiencies depends upon the change in the index, it is impartial of level of the index.

Hence existing guidelines might be modified so as to emphasize the change more and the level less. The rise of large digital structures — from Facebook, Google, and Amazon in the US to JD, Tencent, and Alibaba in China — has led to the remarkable collection and advertisement use of personal data. This column argues that a principal, underappreciated feature of those data is their social aspect: data captured from a person user describe not only that individual, but other users with similar traits or behaviours. The policy implications of this insight encompass the desire for privacy regulations concentrated less on customized prices, and more on group based price discrimination.

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