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Research Papers

The Illusory Privacy Problem in Sorrell v. IMS Health

Those in the habit of looking for privacy invasions can find them everywhere. This phenomenon is on display in the recent news coverage of Sorrell v. IMS Health Inc., a case currently under review by the Supreme Court. The litigation challenges a Vermont law that would limit the dissemination and use of prescription drug data for the purposes of marketing to physicians by pharmaceutical companies. The prescription data at issue identify the prescribing physician and pharmacy, but provide only limited detail about the patients (for example, the patient�s age in years and gender). Nevertheless, privacy organizations like the Electronic Frontier Foundation (EFF) and the Electronic Privacy Information Center (EPIC) have filed amici curiae briefs sounding distress alarms for patient privacy. A recent New York Times article describes the case as one that puts the privacy interests of “little people” against the formidable powers of “Big Data.” The fear is that, in the information age, data subjects could be re-identified using the vast amount of auxiliary information available about each of us in commercial databases and on the internet.

Research Papers

Cloud Computing: Architectural and Policy Implications

Cloud computing has emerged as perhaps the hottest development in information technology. Despite all of the attention it has garnered, existing analyses focus almost exclusively on the issues surrounding data privacy without exploring cloud computing�s architectural and policy implications. This Article offers an initial exploratory analysis in that direction. It begins by introducing key cloud computing concepts, such as service oriented architectures, thin clients, and virtualization, and discusses the leading delivery models and deployment strategies being pursued by cloud computing providers. It then analyzes the economics of cloud computing in terms of reducing costs, transforming capital expenditures into operating expenditures, aggregating demand, increasing reliability, and reducing latency. It then discusses the architectural implications of cloud computing for access networking (focusing on bandwidth, reliability, quality of service, and ubiquity) and data center interconnectivity (focusing on bandwidth, reliability, security and privacy, control over routing policies, standardization, and metering and payment). It closes by offering a few observations on the impact of cloud computing on the industry structure for data centers, server-related technologies, router-based technologies, and access networks, as well as its implications for regulation.

Research Papers

Does Antitrust Enforcement In High Tech Markets Benefit Consumers? Stock Price Evidence from FTC V. Intel

Antitrust enforcement efforts in the United States and abroad have been ramped up in high-tech industries, rekindling stale and largely unresolved debates concerning the appropriate role of antitrust enforcement in high-tech markets. Like the previous enforcement actions against Microsoft, and likely enforcement efforts in the future against similarly situated business firms, recent enforcement efforts challenging Intel’s business practices raise the same fundamental issues concerning the effectiveness of competition policy in dynamically competitive industries. While opinions and broad-sweeping assertions as to the appropriate role of antitrust in these markets are common, traditional empirical approaches have left fundamental issues unresolved. The enforcement actions against Intel, for example, have resulted in the assessment of over $3 billion in fines and consigned authority to the Federal Trade Commission to impose a variety of restrictions on Intel�s pricing practices, distribution arrangements, and product design choices.

Research Papers

Antitrust in High-Tech Industries

A large share of the recent growth in the United States economy has been in high-technology industries or service industries that use high-tech services. Information and communications technologies have developed very rapidly, generating productivity growth throughout the economy. The firms developing many of these technologies�such as Oracle, Intel, and Microsoft�have achieved a dominant position in the marketplace and thus attracted the attention of competition authorities. But successful innovation, with or without patent protection, is often accompanied by a position of market power. Transitory or even not so transitory monopoly profits are the reward for successful innovation and may be required to promote a dynamic economy, as Joseph Schumpeter explained decades ago. As a result, successful innovators often find themselves in conflict with competition policy authorities.

Research Papers

Antitrust and Vertical Integration in “New Economy” Industries

Whether the firms that supply Internet hardware and software should face restrictions on the use of their property is an important and controversial policy issue. Advocates of “net neutrality” � including President Obama and the current FCC majority�believe that owners of broadband distribution systems (hardware used to distribute Internet and video services) and producers of certain “must-have” video content should be subject to prophylactic regulation transcending present-day antitrust law enforcement. Their objective is to protect the free and open culture of the Internet from efforts to foreclose or limit competition in the provision of content, including online video services, which they see as potential competition to older video distribution methods.

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