Tuesday, September 11, 2007
Posted by D. Daniel Sokol
Reading through a number of new working papers this weekend, I found a very interesting one that dealt with how we conceptualize the role of economic experts in antitrust cases. Given the importance of economic analysis to antitrust, this is (and should be) a key issue to be thinking about, one that Maarten Pieter Schinkel of the University of Amsterdam, Amsterdam Center for Law and Economics does with Forensic Economics in Competition Law Enforcement.
ABSTRACT: This paper delineates the specialty field of forensic IO as the application of theoretical and empirical industrial organization economics in the legal process of competition law enforcement. Four stages of that process which can benefit from forensic IO techniques are distinguished: detection and investigation; case development; decision making and litigation; and remedies, sanctions and damages. We survey the use of economics in such aspects as identifying potential forms of anticompetitive behaviour, screening markets for competition law violations, determining causality, advising on appropriate remedies and assessing antitrust damages. The paper discusses the role of expert economic witnesses in competition cases. It calls for an organization of forensic IO within the context of existing forensic institutes.