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Costs of delay and rent‐seeking under the modification of final judgment
Author(s) -
Rubin Paul H.,
Dezhbakhsh Hashem
Publication year - 1995
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090160410
Subject(s) - process (computing) , economic justice , economics , business , law and economics , rent seeking , actuarial science , microeconomics , computer science , law , political science , politics , operating system
Under the MFJ, the Bell Operating Companies are restricted in the activities they can undertake. Requests for waivers f'mm these restrictions must be approved by the Department of Justice and a Court. Most requests are ultimately approved. If we assume that all such decisions are made correctly, then the costs of delays associated with the approval process are much larger than any reasonable estimate of the benefits of the process. To these costs must be added the substantial costs of rent seeking and of the uncertainty associated with the process.