This paper discusses a method for evaluating the competitive effects of reverse payments in the wake of the Supreme Court's Opinion in Actavis. Specifically, we demonstrate a method for evaluating actual reverse payments against a “maximum-efficient-reverse-payment” criterion under both...

This paper provides a welfare analysis of vertical merger between an input monopolist and downstream firms that compete perfectly in a homogeneous product market. The distinguishing feature of the present model is that the downstream firms face capacity constraints. As a result of downstream...

This paper examines the conditions under which some resource owners would support the levying of an exc ise tax on the sales of a good to which they supply inputs in product ion. In the three-factor model considered, the supply of one input is perfectly elastic. Two other factors are substitutes...