Lost Profits from Patent Infringement: The Simulation Approach
نویسندگان
چکیده
A patent owner is entitled to recover any additional profits that would have been earned but for infringement. This paper suggests the use of an adaptation of merger simulation to assess lost profits in patent infringement cases. A model of the industry with infringement is calibrated to observed prices and quantities and estimated demand elasticities. Lost profits are then estimated by calculating a new equilibrium without the infringing product(s). JEL Classification Numbers: K29, L13, O34
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