Advanced Search
MyIDEAS: Login to save this article or follow this journal

Estimating overcharges in antitrust cases using a reduced-form approach: Methods and issues


Author Info

Registered author(s):


    This paper presents several methods and discusses salient issues pertaining to the use of reduced-form models to estimate overcharges in antitrust matters (e.g., price-fixing) where “but-for” prices may be less than actual prices during the anticompetitive period. In particular, two common types of reduced-form estimations are discussed: the “dummyvariable approach” and the “forecasting approach”. Under either methodology, an error correction model is then specified as one way to address technical problems often found in applied time-series analysis – nonstationary data and the existence of short-term and longterm dynamics.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: no

    Bibliographic Info

    Article provided by Universidad del CEMA in its journal Journal of Applied Economics.

    Volume (Year): IX (2006)
    Issue (Month): (November)
    Pages: 361-380

    as in new window
    Handle: RePEc:cem:jaecon:v:9:y:2006:n:2:p:361-380

    Contact details of provider:
    Postal: Av. Córdoba 374, (C1054AAP) Capital Federal
    Phone: (5411) 6314-3000
    Fax: (5411) 4314-1654
    Web page:
    More information through EDIRC

    Related research

    Keywords: price-fixing; time-series; reduced-form; estimated overcharges; antitrust;

    Find related papers by JEL classification:


    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. John M. Connor, 2004. "Global Antitrust Prosecutions Of Modern International Cartels," Working Papers, Purdue University, College of Agriculture, Department of Agricultural Economics 04-15, Purdue University, College of Agriculture, Department of Agricultural Economics.
    2. Forni, Mario, 2002. "Using Stationarity Tests in Antitrust Market Definition," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3236, C.E.P.R. Discussion Papers.
    3. Baker, Jonathan B & Rubinfeld, Daniel L, 1999. "Empirical Methods in Antitrust Litigation: Review and Critique," American Law and Economics Review, Oxford University Press, Oxford University Press, vol. 1(1-2), pages 386-435, Fall.
    4. Higgins, Richard S. & Johnson, Paul A., 2003. "The mean effect of structural change on the dependent variable is accurately measured by the intercept change alone," Economics Letters, Elsevier, Elsevier, vol. 80(2), pages 255-259, August.
    5. repec:reg:wpaper:131 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Hüschelrath, Kai & Müller, Kathrin & Veith, Tobias, 2012. "Concrete shoes for competition: The effect of the German cement cartel on market price," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 12-035, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Carl Chiarella & Xue-Zhong He & Remco C.J. Zwinkels, 2014. "Heterogeneous Expectations in Asset Pricing:Empirical Evidence from the S&P500," Research Paper Series, Quantitative Finance Research Centre, University of Technology, Sydney 344, Quantitative Finance Research Centre, University of Technology, Sydney.
    3. Doose, Anna Maria, 2013. "Methods for calculating cartel damages: A survey," Ilmenau Economics Discussion Papers, Ilmenau University of Technology, Institute of Economics 83, Ilmenau University of Technology, Institute of Economics.
    4. Boyer, Marcel & Kotchoni, Rachidi, 2014. "How Much Do Cartels Overcharge?," TSE Working Papers, Toulouse School of Economics (TSE) 14-462, Toulouse School of Economics (TSE).


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:cem:jaecon:v:9:y:2006:n:2:p:361-380. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valeria Dowding).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.