Open AccessHere to stay: regression analysis in follow-on cartel damages
Author(s) -
Spyros Droukopoulos,
Barbara Veronese,
Stefan Witte
Publication year - 2020
Publication title -
competition law journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.111
H-Index - 1
eISSN - 2516-5771
pISSN - 1476-9085
DOI - 10.4337/clj.2020.03.04
Subject(s) - damages , harm , regression analysis , regression , valuation (finance) , balance (ability) , actuarial science , cartel , order (exchange) , economics , risk analysis (engineering) , computer science , business , political science , microeconomics , psychology , law , incentive , accounting , finance , machine learning , neuroscience , psychoanalysis
Private damage claims that follow after a competition authority's infringement decision require an accurate estimation of the harm caused, in order to avoid under- or over-compensation. The right method for valuation of damage will depend on the specifics of a particular case, and will need to balance the need to allow for a sufficient level of detail, while remaining tractable and practical for the case overall. Regression analysis is often the method that best balances these competing objectives. This article discusses the increasing use of regression analysis in follow-on damage claims in Europe. It outlines possible reasons why this widespread application of regression analysis is not yet extensively reflected in final judgments by national courts, and considers how this may change in the future. It concludes that the regression analysis is here to stay.