Monday, September 29, 2008
Posted by D. Daniel Sokol
Nicolas Petit, University of Liege Law and Ermano Fegatilli, University of Liege Law discuss Econometrics and Antitrust Law - A Conceptual Clarification in their latest working paper.
ABSTRACT: The present paper reviews in a plain language and with only limited statistical formalization, the virtues of econometrics in the field of competition law. Following a brief introduction to the origins of econometrics, we explain first that econometrics provides assistance to decision-making in a variety of fields (merger control, abuse of dominance, etc.). Second, we show that econometrics also constitute a decision-reading instrument, which may assist competition agencies, courts, firms and their counsels in understanding the content of the law. The econometric models discussed in the paper are illustrated by examples coming from well-known legal cases. Our conclusion is that in light of the novel sophisticated issues arising in antitrust enforcement (damages estimation, etc.), the nascent "econometrics of competition law" exhibit promising features.