Special Topics in Forensic Economics
Saturday, Jan. 4, 2020 2:30 PM - 4:30 PM (PDT)
- Chair: William G. Brandt, Brandt Forensic Economics
Economic Damages in Price Fixing Cases: A Difference-in-Difference Estimation Approach
AbstractWhen two or more firms collude to raise price above its competitive equilibrium level, customers lose some benefits of a competitive marketplace. The overcharge to customers is a standard measure of economic damages, and requires as an input an estimate of the competitive equilibrium price -- but for collusion. Two approaches to estimating the “but for” price are the lookback method – which relies on some past pre-collusion price, and the yardstick method – which relies on price in a comparable contemporaneous market. Each method can incur bias, and to address these biases the present work combines the two methods using a “difference in difference” econometric approach. Some economic models and computer simulation illustrate the approach, with variation in market fundamentals over time and across regions.
The Impact of Race on a Child’s Educational Attainment and Life Time Earnings
AbstractThis paper examines the impact of using a race-neutral model on predicted educational attainment and income of a child in a personal injury legal matter. This is accomplished by comparing the results of the updated ordered probit model from Spizman and Kane (2019) which includes race, to the ordered probit without race.
- K2 - Regulation and Business Law