We distinguish standard settlements, in which the status quo is preserved, and injunctive settlements, which prohibit the defendant’s activity. The reverse (payment) settlement is a special type of injunctive settlement. We examine the divergence between private and social incentives to settle...

In spite of its tenure as the prevailing economic theory of strict liability, the proposition that strict liability should be preferred to negligence when it is desirable to reduce injurers' activity levels rather than victims' activity levels raises a few questions. First, when should we prefer...

In recent years, new articles presenting rigorous analyses of bargaining incentives have overturned some of the fundamental claims made by Calabresi and Melamed in their seminal article on property rules and liability rules published in 1972. In particular, the proposition that property rules...

Perhaps no area of antitrust law provokes as much controversy as predatory pricing, the theory that a firm violates the antitrust laws by setting its price too low.

Prof. Keith Hylton of Boston University School of Law presents this new introduction to “Law and the Future: Trade Regulation,†by Aaron Director and Edward H. Levi.

The antitrust laws of the United States have, from their inception, allowed firms to acquire significant market power, to charge prices that reflect that market power, and to enjoy supra-competitive returns. This article shows that this policy, which was established by the U.S. Congress and...

It is also an effort to reverse or set aside the adopted lessons of the error cost approach.

One point I think is worth noting is that there is a process for evaluating questions of evidence and interpretation in the Intel case in the EU that appears to be quite different from that in the United States.

The agency will then be able to claim that it has enhanced the regulatory power of antitrust law, and effectively moved the law to a position closer to that in the European Union.