.
7
Example
2-supplier
market, price is $10.
–Patent
holder sold 800 units @ $4 profit/unit, infringer sold 200 units.
Assume
$1 price erosion (i.e., but-for price is $11).
Lost
profits NOT $1,800.
–$1,800
= $1 ´ 1,000
total units + $4 ´
200 “lost” units.
Ignores
price elasticity.