Welfare Standards and Competition Policy
  • Dino Falaschetti
Part of the Studies in Public Choice book series (SIPC, volume 14)

By methodically evaluating conventional wisdoms, our formal models from Part I of this book exposed an important source of influence on competition policy that less scientific commentaries often miss – like producers, consumers also have an incentive to seek political advantage and, when that advantage is realized, tend to favor themselves at others’ expense. This implication follows from a consistent treatment of micro-motivations for individual choices, whether those choices are made in firms where individuals produce or in marketplaces where individuals consume. Everyone has an interest in institutions that favor themselves, even if those institutions create negative-sum games for society.

At least in principle, then, the problem of too much power rests with consumers as well as with producers. Moreover, the statistical evidence developed in Part I suggests that, rather than being an abstract possibility, at least one important economic sector is underperforming because democratic...


Economic Performance Market Power Competition Policy Insurance Sector Term Limit 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Abraham, Kenneth S. (2002). The insurance effects of regulation by litigation. In W. Kip Viscusi (Ed.), Regulation through litigation (pp. 212–243). Washington, DC: AEI Press.Google Scholar
  2. Abraham, Kenneth S. (2007). The hurricane Katrina insurance claims. Virginia Law Review(In Brief), 93(August), 173–180.Google Scholar
  3. Acemoglu, Daron (2002). Why not a political Coase Theorem? social conflict, commitment and politics. Working paper, MIT Department of Economics.Google Scholar
  4. Acemoglu, Daron (2003). The form of property rights: oligarchic vs. democratic societies. NBER Working Paper 10037 (October).Google Scholar
  5. Acemoglu, Daron, Simon Johnson, and James A. Robinson (2001). The colonial origins of comparative development: and empirical investigation. American Economic Review 91(5), 1369–1401.CrossRefGoogle Scholar
  6. Baker, Jonathan (2003). The case for antitrust enforcement. Journal of Economic Perspectives 17(4), 27–50.CrossRefGoogle Scholar
  7. Baker, Jonathan (2006). Competition policy as a political bargain. Antitrust Law Journal 73(2), 483–530.Google Scholar
  8. Buccirossi, Paolo (2008). Introduction. In Paolo Buccirossi (ed.) Handbook of Antitrust. Cambridge and London: MIT Press.Google Scholar
  9. Bushouse, Kathy (2007). Q&A with insurance commissioner Kevin McCarty. Orlando Sentinel, October 21.,0,6368803.story. Accessed 12 October 2008.Google Scholar
  10. Carlton, Dennis (2007). Does antitrust need to be modernized? Journal of Economic Perspectives 21(3), 155–176.CrossRefGoogle Scholar
  11. Citizens Property Insurance Corporation. Accessed 19 October 2008.
  12. Coase, Ronald (1960). The problem of social cost. Journal of Law and Economics 1(October), 1–44.CrossRefGoogle Scholar
  13. Colodny, Fass, Talenfeld, Karlinsky, and Abate (2008). OIR approves Citizens’ 1.4% emergency assessment fee. Florida Insurance Bulletin September 4.Google Scholar
  14. Coldny, Fass, Talenfeld, Karlinsky, and Abate (2008b). Insurance consumer advocate proposes amendment to credit score rule. Florida Insurance Bulletin, October 27.Google Scholar
  15. Falaschetti, Dino (2008). Can lobbying prevent anticompetitive outcomes? Evidence on consumer monopsony in telecommunications. Journal of Competition Law and Economics, Advance Access published on June 4, 2008, doi:10.1093/joclec/nhn014.Google Scholar
  16. Falaschetti, Dino, and Michael J. Orlando (2008). Money, Financial Intermediation, and Governance. Gloucestershire: Edward Elgar Publishing.Google Scholar
  17. Friedman, David D. (2000). Law’s Order: What Economics Has to Do with Law and Why It Matters. Princeton and Oxford: Princeton University Press.Google Scholar
  18. Galor, Oded (2005). The transition from stagnation to growth: unified growth theory. InP. Aghion and S. Durlauf (Eds.), Handbook of economic growth (pp. 171–293). Amsterdam: North-Holland.CrossRefGoogle Scholar
  19. Garcia, Beatrice E. (2008a). Local insurers writing policies, but avoiding some areas. Miami Herald, May 28. Accessed 28 May 2008.
  20. Garcia, Beatrice E. (2008b). Insurer: no new policies, agents. Miami Herald, July 12. Accessed 16 July 2008.
  21. Garcia, Beatrice E. (2008c). How secure is Citizens Property Insurance? Miami Herald, July 14. Accessed 16 July 2008.
  22. Glaeser, Edward L. and Joseph Gyourko (2005). Urban decline and durable housing. Journal of Political Economy 113(2), 345–375.CrossRefGoogle Scholar
  23. Hemenway, Chad (2008). Florida regulators, Citizens Property Insurance Corp. defend take-out process. BestWire, November 11. Accessed 12 November 2008.
  24. Insurance Information Institute. Accessed 19 October 2008.
  25. Karlinsky, Fred E. and Maria E. Abate (2008). Putting a stop to the parade of horribles. FORC Journal 19(1), 27–30Google Scholar
  26. Karlinsky, Fred E. and Richard J. Fidei (2008). Credit-based insurance scores. FORC Journal 19(1), 30–32.Google Scholar
  27. Kleindienst, Linda and Kathy Bushouse (2007). Florida legislature passes bill to lower insurance rates. South Florida Sun-Sentinel, January 23.Google Scholar
  28. McChesney, Fred S. (1987). Rent extraction and rent creation in the economic theory of regulation. Journal of Legal Studies 16(1), 101–118.CrossRefGoogle Scholar
  29. Mueller, Dennis C. (1989). Public choice II. Cambridge, New York, and Melbourne: Cambridge University Press.Google Scholar
  30. Neven, Damien and Lars-Hendrik Röller (2005). Consumer surplus vs. welfare standard in a political economy model of merger control. International Journal of Industrial Organization 23(9–10), 665–668.CrossRefGoogle Scholar
  31. Peltzman, Sam (1976). Toward a more general theory of regulation. Journal of Law & Economics 19(2), 211–240.CrossRefGoogle Scholar
  32. Rajan, Raghuram G. and Luigi Zingales (2003). Saving Capitalism from the Capitalists: Unleashing the Power of Financial Markets to Create Wealth and Spread Opportunity. New York: Crown Business.Google Scholar
  33. Risk Management Solutions (2006). Accessed 19 October 2008
  34. Royce, Ed (2008). The forgotten financial sector. Wall Street Journal, April 16, A18.Google Scholar
  35. Scalia, Antonin and Bryan A. Garner (2008). Making your case: the art of persuading judges. St. Paul, Minnesota: Thomson/West.Google Scholar
  36. Sowell, Thomas (2007). Basic Economics: a Common Sense Guide to the Economy, 3rd edition. Tennessee: Basic Books.Google Scholar
  37. Stigler, George J. (1971). The theory of economic regulation. Bell Journal of Economics and Management Science 2(1), 3–21.CrossRefGoogle Scholar
  38. Tennyson, Sharon (2007). Efficiency consequences of rate regulation in insurance markets. Networks Financial Institute Policy Brief, 2007-PB-03.Google Scholar
  39. Vogel, Mike (2008). A game of risk for small insurers. – The Website of Florida Business. June 1.Google Scholar
  40. Wall Street Journal (2008) Opinion: what they said about Fan and Fred. October 2. Accessed 15 November 2008.
  41. Weil, David (2004). Economic growth. Boston: Addison Wesley.Google Scholar
  42. Wilke, John R. (2008). Collusion inquiry targets ice companies. Wall Street Journal, August 7, B1.Google Scholar
  43. Winans, Brent (2008). Florida flirting with hurricane insurance disaster. IRMI Insights, August. Accessed 19 October 2008.
  44. Zucco, Tom (2008). Douglas leaves Citizens more stable. St. Petersburg Times, July 25. Accessed 28 July 2008.

Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  • Dino Falaschetti
    • 1
    • 2
  1. 1.Florida State UniversityTallahasseeUSA
  2. 2.Hoover InstituteStanford UniversityStanfordUSA

Personalised recommendations