While private actions for damages against price-cartels by direct and indirect customers receive much attention, it is largely unresolved to what extent other groups that are negatively affected may claim compensation. This paper focuses on probably the most important one: suppliers to a...

A crucial step in the quantification of damage in the context of damages claims is the estimation of the counterfactual price level: the price level that would have been observed in the absence of the cartel. This article discusses the Difference-in-Differences (“DiD”) estimation procedure...

Market definition is conducted under conditions of notable uncertainty, due to conceptual ambiguity and model uncertainty. Statistical decision theory can help to explain and improve the market definition decision. Specifically, a Bayesian decision rule can assist analysts in defining markets by...

This paper is motivated by the US freight railroad industry, which is characterized by a major restructuring over the last 30 years. In particular, the number of active firms decreased from 26 in 1978 to seven in 2006 due to several takeover waves. The empirical focus concerns the estimation of...

We provide an example for an errors in variables problem which might be often neglected but which is quite common in lab experimental practice: In one task, attitude towards risk is measured, in another task participants behave in a way that can possibly be explained by their risk attitude. How...

This paper proposes an empirical model of a discrete choice demand with a nonparametric income effect specification. The model allows for the flexible estimation of demand curvature, which has significant implications for pricing and policy analysis in oligopolistic markets. We adopt a sieve...

An important issue in estimating cartel overcharges is to have a reliable estimate of the but-for-the-cartel price. While the cartel price is observable, the but-for-the-cartel price is not. A construction of the but-for-cartel-price evolution by assuming perfect competition, i.e. that price...