Posted by Social Science Research Network
Rise of the digital regulator
By Rory Van Loo (Boston University)
Abstract: The administrative state is extending its reach through machines designed to influence decisions. Agencies have written rules to strengthen travel websites such as Expedia and have launched their own online tools such as the Consumer Financial Protection Bureau’s mortgage calculator. These tools steer people toward better schools, healthier food, and more savings. Enthusiasm for these choice engines rests on two questionable assumptions. First, they effectively police consumer markets. Second, they require minimal government involvement. In diverse contexts, for-profit online advisers such as travel websites have become what mortgage brokers often were before the 2008 financial crisis. They make buying easier. But they also subtly advance their interests at the expense of those they serve. Publicly run alternatives perform unpredictably or — like the Affordable Care Act health-insurance exchanges — are massive undertakings. Any narrative of mandated machine-readable disclosures effortlessly launching powerful consumer sentinels is fiction. The unpleasant truth is that effective digital regulators would require investing heavily in either artificially intelligent state machines or a new legal regime.
Featured News
K&L Gates Expands Antitrust Practice with New Partners
May 15, 2024 by
CPI
Polish Regulators Probe PS Store and Steam for Antitrust Violations
May 15, 2024 by
CPI
French Regulator Meat-Cutting Sector Case Following Antitrust Review
May 15, 2024 by
CPI
Arizona Attorney General Files Suit Against Amazon Over Unfair Business Practices
May 15, 2024 by
CPI
Varsity Spirit and Private Equity Owners Settle Class Action Antitrust Suit
May 15, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI