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Estimating common impact in class action litigation: A two‐step method

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  • Yonghong An

Abstract

A central question in class action litigation is all or nearly all proposed class members were injured by the alleged conduct, that is, does “common impact” exist. In this paper, we demonstrate that a two‐step econometric methodology can be used to estimate customer‐level overcharges, providing a basis for evaluating whether common impact exists. The estimates obtained from this methodology possess desirable properties. We also address several common misunderstandings and misinterpretations of the two‐step approach in practice.

Suggested Citation

  • Yonghong An, 2025. "Estimating common impact in class action litigation: A two‐step method," International Studies of Economics, John Wiley & Sons, vol. 20(3), pages 226-235, September.
    • Handle: RePEc:wly:intsec:v:20:y:2025:i:3:p:226-235
    DOI: 10.1002/ise3.70017
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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. 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.
    3. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    4. Arellano, Manuel, 2003. "Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780199245291.
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