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We consider a model of moral hazard with limited liability of the
agent and effort that is two-dimensional. One dimension of the
agent’s effort is observable and the other is not. The principal
can thusmake the contract conditional not only on outcom...
The new Medicare Part D program provides prescription drug coverage
for older Americans through highly subsidized and tightly regulated
plans offered by private insurance firms. For most eligible
individuals without coverage from other sources, obtai...
01.02.2012
We analyze the profitability of third degree price discrimination
under consideration of consumers' fairness concerns within an
experiment and explain the results within a theoretical framework.
We find that with an increase in the price differential...
In this paper, we ask whether courts should continue to rule
settlements in the context of pharmaceutical claims per se legal,
when these settlements comprise payments from originator to generic
companies, potentially delaying generic entry compared...
01.02.2012
Antitrust scholars have argued that exclusive contracts have
anticompetitive, or at best neutral effects, if no efficiencies are
generated. In contrast, this paper shows that exclusive contracts
can have procompetitive effects, provided buyers are im...
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