Generic-Drug Firms Face Possible Collusion Charges
by: Peter Loftus, Brent Kendall, and Christopher M. Matthews
Nov 04, 2016
Click here to view the full article on WSJ.com
by: Peter Loftus, Brent Kendall, and Christopher M. Matthews
Nov 04, 2016
Click here to view the full article on WSJ.com
TOPICS: Antitrust, Price Fixing
SUMMARY: Federal prosecutors, after a lengthy probe, are nearing possible criminal charges for price-collusion in the generic-drug industry, according to a person familiar with the matter.
CLASSROOM APPLICATION: The article offers a case for instructors to present about potential price fixing. Instructors can demonstrate the increased profits that firms earn from colluding in setting prices.
QUESTIONS:
1. (Introductory) What is "price fixing"?
2. (Advanced) Demonstrate that price fixing results in increased profits for firms that collude.
3. (Advanced) Why would antitrust, or competition, laws be written to prevent price fixing?
1. (Introductory) What is "price fixing"?
2. (Advanced) Demonstrate that price fixing results in increased profits for firms that collude.
3. (Advanced) Why would antitrust, or competition, laws be written to prevent price fixing?
Reviewed By: James Dearden, Lehigh University
No comments:
Post a Comment