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:
Merger simulation in second-score auctions: A nested logit model
In a recent Economics Letters article, CRA’s Martino De Stefano and Serge Moresi show how to improve the second-score auction model that is often used to...