Patent Trolls, Nuisance Suits, and the Federal Trade Commission

The Federal Trade Commission’s (“FTC’s”) Patent Assertion Entity Activity Report (“The Report”) includes a path-breaking collection of data. The Report was compiled with the object of changing policy, both in Congress and before the courts. Because of the FTC’s ability to force businesses and individuals to provide information, a power that no ordinary researcher possesses, the FTC has amassed a data set that can potentially be of great value. For example, the Report’s description of litigation Patent Assertion Entities’ (“PAEs”) and portfolio PAEs’ structure and behavior is, although not entirely new, very instructive. Unfortunately, the FTC made analytical errors that preclude using its work to directly support policy prescriptions. First, the FTC claims that if a suit settles for less than $300,000, then the suit was likely Negative Expected Value (“NEV”). In addition, the FTC claims that NEV suits are bad. These claims are analytically false. Second, the FTC’s policy recommendations have no connection to any of its factual analysis. Although this does not prove that the policy recommendations are bad ideas, the FTC’s factual analysis gives the reader no help, at all, in deciding on the merits of the recommendations. Further, because the Report’s analytics are so flawed, they cannot help one evaluate any proposed new policies. Therefore, in terms of providing normative guidance, the Report is a failure

The Divergence Between Willingness-To-Pay and Willingness-To-Accept Measures of Value

Do people value commodities more when they own the commodities than when they do not? Although economic models generally presume that economic agents evaluate commodities independently of whether the agents own those commodities or not, an assumption that we term the "basic independence" assumption, researchers in economics and law are starting to doubt that this is true. These doubts about the soundness of the basic independence assumption challenge accepted economic doctrine. Most theoretical and applied models in economics use the basic independence assumption both to predict and assess the operation of markets. And in the relatively new discipline of law and economics, the basic independence assumption produces the Coase Theorem, which is the starting point for much economic analysis of legal rules. In this paper we present, organize, and critique the modern evidence on the basic independence assumption so as to draw together the learning of the economists and the lawyers. We will first investigate the evidence on the divergence between willingness-to-accept and willingness-to-pay measures of value, and then ask about possible explanations for the evidence. Next, we will explore the implications of the divergence for analysis in law and economics. Last, we will show that although the divergence between willingness-to-accept and willingness-to-pay measures of value may entail substantially limiting the role of cost- benefit analysis, we cannot precisely map those limits without answering some difficult questions about the source of the disparity between willingness-to-accept and willingness-to-pay

Willingness-To-Pay vs. Willingness-To-Accept: Legal and Economic Implications,

Do people value commodities more when they own the commodities than when they do not? Although economic models generally presume that economic agents evaluate commodities independently of whether the agents own those commodities--the basic independence assumption researchers in economics and law are starting to doubt whether this assumption is true. Doubts about the soundness of the basic independence assumption challenge accepted economic doctrines. Most theoretical and applied models in economics use the basic independence assumption both to predict and to assess the operation of markets. In the relatively new discipline that combines law and economics, the basic independence assumption produces the Coase Theorem, which is the starting point for much economic analysis of legal rules

What's age got to do with it? Supreme Court appointees and the long run location of the Supreme Court median justice

For approximately the past forty years, Republican Presidents have appointed younger Justices than have Democratic Presidents. Depending on how one does the accounting, the average age difference will vary, but will not go away. This Article posits that Republicans appointing younger justices than Democrats may have caused a rightward shift in the Supreme Court. We use computer simulations to show that if the trend continues the rightward shift will likely increase. We also produce some very rough estimates of the size of the ideological shift, contingent on the size of the age differential. In addition, we show that the Senate’s role in confirming nominated Justices has a significant moderating effect on the shift. Last, we consider the interaction between our results and the oft-proposed eighteen year staggered terms for Supreme Court Justices. We show that such an institutional change would almost completely wipe out the ideological effect of one Party appointing younger Justices

Experience with the Hubble Space Telescope: 20 years of an archetype

The Hubble Space Telescope's mission is summarized, with special emphasis placed on the Space Telescope Science Institute's unique experience with Hubble's behavior as an astronomical telescope in the environment of low earth orbit for over two decades. Historical context and background are given, and the project's early scientific expectations are described. A general overview of the spacecraft is followed by a more detailed look at the optical design, both as intended and as built. Basic characteristics of the complete complement of science instruments are also summarized. Experience with the telescope on-orbit is reviewed, starting with the major initial problems, solutions, human servicing missions, and the associated expansion of the observatory's capabilities over this time. Specific attention is then given to understanding Hubble's optical quality and pointing/jitter performance, two fundamental characteristics of a telescope. Experience with-and the important mitigation of-radiation damage and contamination is also related. Beyond the telescope itself, the advances in data reduction, calibration, and observing techniques are briefly discussed, as well as the subsequent emergence of highly accessible high-level archival science products. Hubble's scientific impact concludes the discussion.Comment: Also found at http://www.stsci.edu/institute/org/telescopes/Reports/LalloOE2012.pd

What’s age to do with it? Supreme Court appointees and the long run location of the Supreme Court median justice

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