Competition and Regulation Times. November 2011.

Title: What a nuisance: efficiency vs justice Abstract: The tort of nuisance challenges the right of one property holder to indirectly disturb the rights of another. It's one of the oldest causes of action in common law, dating from 1610 when William Aldred, disgusted at the foul emanations from his neighbour's pigs, took suit and won. But despite - or possibly because of - this weight of history, decisions in nuisance cases follow well honed conventions that more often than not set justice against economic efficiency. Richard D'Ath argues that greater flexibility would give courts the ability to vindicate both the rights of 'victims' and the wider societal interest in efficient law-making - and he proposes a means of achieving this. Author: Richard D'AthTitle: Absolutely positively discriminatory Abstract: In modern parlance, 'discrimination' has negative connotations - and those engaging in its practice are considered to be acting at least unethically, if not in some instances illegally. However, discrimination in pricing is often essential if consumers are to have access to some key infrastructures and services - as Bronwyn Howell shows. Author: Bronwyn HowellTitle: Pin money Abstract: Despite being served by banks that are mainly Australian-owned, New Zealanders use their EFTPOS cards as payment instruments much more frequently than Australians do. New Zealand's EFTPOS system - along with Norway's BankAxept - is one of the most well used globally. What is it about this payment instrument that makes New Zealanders so keen on it? Mike Wilkinson investigates a trans-Tasman tale of payments innovation that explains why. Author: Mike WilkinsonTitle: Seeing through SOE performance Abstract: In the previous issue of Competition and Regulation Times, Dave Heatley and Talosaga Talosaga showed that state-owned enterprises (SOEs) are poor disclosers and queried the purpose of continuous disclosure for firms (such as SOEs) that have no tradable ownership interests. Here they contend that if continuous disclosure is to have any effect on SOEs' performance, then it must operate through mechanisms other than share ownership. Author: Talosaga Talosaga, David HeatleyTitle: A Cavalier decision? Abstract: In June this year, the Commerce Commission gave the go-ahead to Cavalier Wool Holdings Ltd's offer for the assets of (and certain shares held by) New Zealand Wool Services International Ltd. The Commission's decision was noteworthy as the first successful authorisation under the Commerce Act 1986 since 2000. Trish Keeper provides an overview of the decision, outlines the nature of the legal tests required, and identifies some areas of uncertainty with those tests. Author: Trish KeeperTitle: What a gas! Abstract: Natural gas provides a cheap and versatile fuel for use by households and businesses as well as by electricity generators. The industry, however, has faced some recent turbulence. Even before the recent rupture in the Maui transmission pipeline, capacity shortages had led to concerns about the adequacy of investment in maintaining and expanding the natural gas infrastructure. Stanford Levin and Alfred Duncan take a closer look at the industry. Author: Stanford Levin, Alfred DuncanTitle: Perplexity in princing corporate bonds Abstract: The corporate bond market is significant. According to the United States Federal Reserve, outstanding US corporate bonds totalled $4.6 trillion by the end of 2010 - an increase of more than 350% above 1990 levels. However, there has been very little empirical work done to test the vast theoretical literature of corporate bond pricing models. Nimesh Patel surveys their accuracy and reliability. Author: Nimesh Pate