The legality of reverse payment settlements remains a highly contentious area of antitrust law and involves significant economic issues. Plaintiffs have argued that the presence of reverse payments show these arrangements to be anticompetitive. However, US courts have been reluctant to accept these arguments; reverse payment settlement cases are complex, and any assessment of the consequences must consider other factors besides the mere presence of a reverse payment. In this article, CRA explores the economic issues that the US courts have been struggling with since the Tamoxifen settlement in 1993. To read the article, click here:
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...