Antitrust in the Not-For-Profit Sector

Despite the conceptual differences between for-profit and non-profit firms stressed in conventional economic analyses of the non-profit sector, U.S. antitrust law generally does not distinguish between these two organizational forms. This paper argues that the same incentives to restrain trade exist in the non-profit sector as in the for-profit sector. Altruistic firms benefit from exploiting market power, just as non-altruistic ones do, even when they would price below cost without regard to competition. Therefore, promoting competition is socially valuable regardless of the particular objectives of producers, and the fact that antitrust law does not distinguish between the two sectors is efficient.

The Long-Run Growth in Obesity as a Function of Technological Change

This paper analyzes the factors contributing to the worldwide long-run rise in obesity and the effects of public interventions on its continued growth. The growth of obesity in a population results from an increase in calorie consumption relative to physical activity. Yet in developed countries, obesity has grown with modest rises in calorie consumption and with a substantial increase in both dieting and recreational exercise. We consider the economic incentives that give rise to a growth in obesity by stimulating intake of calories while discouraging the expending of calories on physical activity. We argue that technological change provides a natural interpretation of the long-run growth in obesity despite a rise in dieting and exercise, that it predicts that the effect of income on obesity falls with economic development, and that it implies that the growth in obesity may be self-limiting.