The Economics of Injunctive and Reverse Settlements
Posted: 26 Apr 2010
There are 2 versions of this paper
The Economics of Injunctive and Reverse Settlements
Date Written: spring 2010
Abstract
This paper extends the economic literature on settlement and draws some practical insights on reverse payment settlements. The key contributions follow from the distinction drawn between standard settlements, in which the status quo is preserved, and injunctive settlements, w and under which reverse settlements will be observed among injunctive settlements. Reverse settlements are likely when the stakes associated with the injunction are large relative to damages and litigation costs. The analysis has broader implications for efficient remedies and legal rules. (JEL K10, K40, K41, D24, O34)
Keywords: K10, K40, K41, D24, O34
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