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Using the Statistical Concept of "Severity" to Assess Seemingly Contradictory Statistical Evidence (with a Particular Application to Damage Estimation)

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  • Bönisch, Peter
  • Inderst, Roman

Abstract

When parties present divergent econometric evidence, the court may view such evidence as contradictory and thus ignore it completely, without conducting closer analysis. We develop a simple method for distinguishing between actual and merely apparent contradiction based on the statistical concept of the "severity" of the furnished evidence. Again using "severity", we also propose a method for reconciling divergent findings in instances of mere seeming contradiction. Our chosen application is that of damage estimation in follow-on cases.

Suggested Citation

  • Bönisch, Peter & Inderst, Roman, 2020. "Using the Statistical Concept of "Severity" to Assess Seemingly Contradictory Statistical Evidence (with a Particular Application to Damage Estimation)," LawFin Working Paper Series 3, Goethe University, Center for Advanced Studies on the Foundations of Law and Finance (LawFin).
    • Handle: RePEc:zbw:lawfin:3
    DOI: 10.2139/ssrn.3702906
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    Keywords

    Cartel damages; severity; statistical testing;
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