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Measuring Benchmark Damages in Antitrust Litigation: Extensions and Practical Implications

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  • Deng Ai

    (NERA Economic Consulting, Washington DC, Washington, DC, USA)

Abstract

This paper compares the “forecasting approach” and the “fully interacted approach” to estimation of cartel damages. We investigate the impact of relaxing the assumptions of exogeneity and stationarity, both theoretically and in Monte Carlo simulations. The results suggest that the advantages of the fully interacted approach are less clear and that the forecasting approach may be more robust to the relaxations of some of these maintained assumptions.

Suggested Citation

  • Deng Ai, 2020. "Measuring Benchmark Damages in Antitrust Litigation: Extensions and Practical Implications," Journal of Econometric Methods, De Gruyter, vol. 9(1), pages 1-12, January.
    • Handle: RePEc:bpj:jecome:v:9:y:2020:i:1:p:12:n:8
    DOI: 10.1515/jem-2019-0010
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    References listed on IDEAS

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    1. James F. Nieberding, 2006. "Estimating overcharges in antitrust cases using a reduced-form approach: Methods and issues," Journal of Applied Economics, Universidad del CEMA, vol. 9, pages 361-380, November.
    2. Park, Joon Y. & Phillips, Peter C.B., 1988. "Statistical Inference in Regressions with Integrated Processes: Part 1," Econometric Theory, Cambridge University Press, vol. 4(3), pages 468-497, December.
    3. James F. Nieberding, 2006. "Estimating Overcharges in Antitrust Cases Using a Reduced-Form Approach: Methods and Issues," Journal of Applied Economics, Taylor & Francis Journals, vol. 9(2), pages 361-380, November.
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    Cited by:

    1. Gabrielli, M. Florencia & Willington, Manuel, 2023. "Estimating damages from bidding rings in first-price auctions," Economic Modelling, Elsevier, vol. 126(C).

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    More about this item

    Keywords

    antitrust; cartels; damages estimation; law and economics; overcharges; price fixing;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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