Oxford University Press
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 Kl0, K40, K41, D24, 034).
Keith N. Hylton,
The Economics of Injunctive and Reverse Settlements
American Law and Economics Review
Available at: https://scholarship.law.bu.edu/faculty_scholarship/764
Working paper available on SSRN