CRA consultants were engaged in connection with a class action in which branded and generic pharmaceutical manufacturers were alleged to have delayed market entry of a generic form of a popular drug. CRA staff analyzed whether there was sufficient evidence to demonstrate that direct purchasers (e.g., wholesalers and medical facilities) suffered a common impact from the alleged activities. This analysis combined economic theory, quantitative research and estimation, and industry knowledge to demonstrate significant differences among members of the proposed class. Following a hearing on class certification, the plaintiffs withdrew their complaint.
How capacity constraints shape unilateral price effects in horizontal mergers
Examples include hospitals with a fixed number of beds, and hotels with a fixed number of rooms. In the article “Unilateral Price Effects in Horizontal...