Friday, May 12, 2017
Emanuel Holler and Maarten Pieter Schinkel discuss UMBRELLA EFFECTS: CORRECTION AND EXTENSION.
Roman Inderst, Frank Maier-Rigaud, and Ulrich Schwalbe's “Umbrella Effects” contains a misspecification of the profit functions that affects the numerical findings reported in the article (Roman Inderst, Frank Maier-Rigaud & Ulrich Schwalbe, Umbrella Effects 10 J. Competition L. & Econ. 739 (2014)). We offer the standard economic model of oligopolistic price competition in differentiated goods as a better basis for further development of umbrella damages cases.