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Institute of Business and Economic Research
Competition Policy Center
University of California, Berkeley
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Still Looking for Lost Profits: The Case of Horizontal Competition
Mark Schankerman, London School of Economics
Suzanne Scotchmer, Dept. of Economics & Graduate School of Public Policy, University of California, Berkeley and NBER

Titlenote for Scotchmer: The author thanks the Toulouse Network on Information Technologies for financial support.

Download the Paper (156 K, PDF file) - December 28, 2005 Tell a colleague about it.
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ABSTRACT:

JEL Classifications: L41, K21

Abstract: When infringement of a patent dissipates profit relative to the licensing agreement that would otherwise occur, damages under the lost-profit rule deter infringement, and otherwise not. We develop this point in a general model and give two examples. However, joint profit might not be dissipated by infringement. An important example is where there are restrictions on licensing that arise from competition policy.

SUGGESTED CITATION:
Mark Schankerman and Suzanne Scotchmer, "Still Looking for Lost Profits: The Case of Horizontal Competition" (December 28, 2005). Competition Policy Center. Paper CPC06-057.
http://repositories.cdlib.org/iber/cpc/CPC06-057

 
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