Sunday, October 25, 2009
Generalist judges and antitrust law
Michael R. Baye (Indiana University Bloomington - Department of Business Economics & Public Policy) and Joshua D. Wright (George Mason University School of Law) have posted Is Antitrust Too Complicated for Generalist Judges? The Impact of Economic Complexity & Judicial Training on Appeals on SSRN.
This piece is interesting because it looks at the problem of generalist judges from a slightly different angle. Instead of assessing the competence of generalist judges to adjudicate cases in particular areas of law, it addresses to ability of judges to rule in cases where complex economics plays a role in the outcome.
Abstract:
Modern antitrust litigation sometimes involves complex expert economic
and econometric analysis. While this boom in the demand for economic
analysis and expert testimony has clearly improved the welfare of
economists - and schools offering basic economic training to judges -
the law and economics literature is silent on the empirical effects of
economic complexity or judges' economic training on decision-making in
antitrust litigation. We use a unique data set on antitrust litigation
in federal district and administrative courts during 1996-2006 to
examine whether economic complexity impacts decisions in antitrust
cases, and thereby provide a novel test of the frequently asserted
hypothesis that antitrust analysis has become too complex for
generalist judges. We also examine the impact of one institutional
response to economic complexity: basic economic training by judges. We
find that decisions involving the evaluation of complex economic
evidence are significantly more likely to be appealed, and decisions of
judges trained in basic economics are significantly less likely to be
appealed than are decisions by their untrained counterparts. Our
results are robust to a variety of controls, including the type of
case, the appellate circuit in which the case is litigated, level of
judicial experience with antitrust claims, judicial quality, and the
political party of the judge. Our tentative conclusion, based on a
revealed preference argument that views a party's appeal decision as an
indication that the initial court got the economics wrong, is that
there is support for the hypothesis that some antitrust cases are too
complicated for generalist judges.
RJE
https://lawprofessors.typepad.com/civpro/2009/10/generalist-judges-and-antitrust-law.html