Carl Shapiro and Aaron Edlin, along with Scott Hemphill and Herbert Hovenkamp, wrote an article about FTC v. Actavis, Inc. which appeared in the fall 2013 issue of Antitrust. The article identifies the essential features of the Supreme Court’s analysis and describes the elements of a plaintiff’s affirmative case, justifications that are ruled out by the Court’s logic, and a test for viable justifications. To read the article, click the link below.
Assessing umbrella pricing incentives
When collusive agreements involve a subset of firms in an industry, they may create the incentive and ability for firms that are not participants in the cartel...