Quantification of harm in damages actions for antitrust infringements: Insights from German cartel cases
AbstractThis paper argues that empirical economic analysis in court proceedings is subject to important economic and legal restrictions, cumulating in a fundamental trade-off between accuracy and practicality. We draw lessons from two influential German court cases – the paper wholesaler cartel decision of 2007 and the cement cartel decision of 2009. We characterise the trade-offs arguing that they need to be well understood, made transparent, and that decisions on how to proceed in light of these trade-offs have to be taken upfront by the court. In this respect, we believe that the three-step procedure (design, application, and robustness checks) followed by the German court in the cement case is well suited to meet the appropriate legal standard and requirements, both with respect to accuracy and practicality.
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Bibliographic InfoPaper provided by ESMT European School of Management and Technology in its series ESMT Research Working Papers with number ESMT-10-001.
Length: 26 pages
Date of creation: 16 Mar 2010
Date of revision:
Publication status: Published in Journal of Competition Law and Economics 6(3): 595-618 .
antitrust law; horizontal anticompetitive practices; quantification of damages;
Find related papers by JEL classification:
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
- K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
- K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
- C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
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- Joseph E. Harrington, 2004.
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Journal of Industrial Economics,
Wiley Blackwell, vol. 52(4), pages 517-533, December.
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- Hüschelrath, Kai & Veith, Tobias, 2011. "Cartel detection in procurement markets," ZEW Discussion Papers 11-066, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Doose, Anna Maria, 2013. "Methods for calculating cartel damages: A survey," Ilmenau Economics Discussion Papers 83, Ilmenau University of Technology, Institute of Economics.
- Hüschelrath, Kai & Müller, Kathrin & Veith, Tobias, 2012. "Estimating damages from price-fixing: The value of transaction data," ZEW Discussion Papers 12-036, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Roman Inderst & Frank Maier-Rigaud & Ulrich Schwalbe, 2013. "Quantifizierung von Schäden durch Wettbewerbsverstöße," Working Papers 2013-ECO-08, IESEG School of Management.
- Hüschelrath, Kai & Müller, Kathrin & Veith, Tobias, 2012. "Concrete shoes for competition: The effect of the German cement cartel on market price," ZEW Discussion Papers 12-035, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Frank Maier-Rigaud & Ulrich Schwalbe, 2013. "Quantification of Antitrust Damages," Working Papers 2013-ECO-09, IESEG School of Management.
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