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Still Looking for Lost Profits: The Case of Horizontal Competition

Authors
  • Schankerman, Mark
  • Scotchmer, Suzanne
Publication Date
Dec 28, 2005
Source
eScholarship - University of California
Keywords
License
Unknown
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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.

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