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Quantification Of Harm In Damages Actions For Antitrust Infringements: Insights From German Cartel Cases

Author

Listed:
  • Hans W. Friederiszick
  • Lars-Hendrik Röller

Abstract

This 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 characterize the trade-offs arguing that they need to be well understood and made transparent, and that decisions on how to proceed in light of these trade-offs need 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.

Suggested Citation

  • Hans W. Friederiszick & Lars-Hendrik Röller, 2010. "Quantification Of Harm In Damages Actions For Antitrust Infringements: Insights From German Cartel Cases," Journal of Competition Law and Economics, Oxford University Press, vol. 6(3), pages 595-618.
    • Handle: RePEc:oup:jcomle:v:6:y:2010:i:3:p:595-618.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhq008
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    Cited by:

    1. Harrington, Joseph E. & Hüschelrath, Kai & Laitenberger, Ulrich & Smuda, Florian, 2015. "The discontent cartel member and cartel collapse: The case of the German cement cartel," International Journal of Industrial Organization, Elsevier, vol. 42(C), pages 106-119.
    2. F. Maier-Rigaud & R. Inderst & U. Schwalbe, 2013. "Quantifizierung von Schäden durch Wettbewerbsverstöße," Post-Print hal-00845779, HAL.
    3. Matthias Hunold & Kai Hüschelrath & Ulrich Laitenberger & Johannes Muthers, 2020. "Competition, Collusion, and Spatial Sales Patterns: Theory and Evidence," Journal of Industrial Economics, Wiley Blackwell, vol. 68(4), pages 737-779, December.
    4. Joseph E. Harrington & Kai Hüschelrath & Ulrich Laitenberger, 2018. "Rent sharing to control noncartel supply in the German cement market," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(1), pages 149-166, March.
    5. Welter, Dominik & Napel, Stefan, 2016. "Responsibility-based allocation of cartel damages," VfS Annual Conference 2016 (Augsburg): Demographic Change 145886, Verein für Socialpolitik / German Economic Association.
    6. Hüschelrath, Kai & Müller, Kathrin & Veith, Tobias, 2012. "Estimating damages from price-fixing: The value of transaction data," ZEW Discussion Papers 12-036, ZEW - Leibniz Centre for European Economic Research.
    7. Haucap, Justus & Heimeshoff, Ulrich & Klein, Gordon J. & Rickert, Dennis & Wey, Christian, 2021. "Vertical relations, pass-through, and market definition: Evidence from grocery retailing," International Journal of Industrial Organization, Elsevier, vol. 74(C).
    8. Hüschelrath, Kai & Veith, Tobias, 2011. "The impact of cartelization on pricing dynamics: Evidence from the German cement industry," ZEW Discussion Papers 11-067, ZEW - Leibniz Centre for European Economic Research.
    9. Kai Hüschelrath & Kathrin Müller & Tobias Veith, 2013. "Concrete Shoes For Competition: The Effect Of The German Cement Cartel On Market Price," Journal of Competition Law and Economics, Oxford University Press, vol. 9(1), pages 97-123.
    10. Gösser, Niklas & Moshgbar, Nima, 2020. "Smoothing time fixed effects," DICE Discussion Papers 343, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    11. F. Maier-Rigaud & H. Schwalbe, 2013. "Quantification of antitrust damages," Post-Print hal-00845771, HAL.
    12. Kai Hüschelrath & Tobias Veith, 2014. "Cartel Detection in Procurement Markets," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 35(6), pages 404-422, September.
    13. Willem H. Boshoff & Rossouw van Jaarsveld, 2019. "Recurrent Collusion: Cartel Episodes and Overcharges in the South African Cement Market," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 54(2), pages 353-380, March.
    14. Fink, Nikolaus & Frübing, Stefan, 2015. "Legal and illegal cartels in the European cement industry," ZEW Discussion Papers 15-066, ZEW - Leibniz Centre for European Economic Research.
    15. Doose, Anna Maria, 2013. "Methods for calculating cartel damages: A survey," Ilmenau Economics Discussion Papers 83, Ilmenau University of Technology, Institute of Economics.
    16. Tsay, Wen-Jen, 2021. "Estimating cartel damages with model averaging approaches," International Review of Law and Economics, Elsevier, vol. 68(C).

    More about this item

    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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