Applied Economic Consultants

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Damage Analysis

Measuring economic damages typically involves making inferences between the actual world, in which the plaintiff alleges illegal conduct, and the counterfactual world, in which the alleged illegal conduct did not occur. The purpose of damages analysis is to estimate the amount of money needed to compensate the plaintiff – be it consumers or competitors – for any losses resulting from the defendant’s illegal actions.

This exercise requires accurate measurement of what occurred in the actual world as well as highly informed assumptions about what is likely to have occurred in the but-for world. applEcon typically employs multiple methods to calculate damages, ensuring that our results are both credible and well supported. Often we are tasked with understanding and analyzing considerable amounts of data in order to quantify the impact of the alleged illegal actions. applEcon uses a variety of advanced economic, statistical, and econometric tools to understand these data. We undertake a thorough document review to ensure our calculations are consistent with the factual evidence.

applEcon has conducted damages analyses for both plaintiffs and defendants in a range of industries, including various types of software and computer hardware, reformulated gasoline, medical devices, modular power components, lumber, Nascar racing, and many others. We have experience estimating damages stemming in the following types of cases: price fixing, monopolization, patent and copyright infringement, tying/aftermarkets, and breach of contract.