Author(s)
David S. Evans
Source
World Competition, Vol. 29, No. 1, March 2005
Summary
This paper describes how economists can help courts avoid economic errors.
Policy Relevance
Economists can help courts do a better job in competition policy cases by designing practical tests and studying how real businesses actually work.
Main Points
- Clear tests are best for businesses and regulators, and are better for courts because they reduce administrative burdens.
- Both competition authorities and economists are aware that their tests for business conduct can be wrong.
- Economists should describe how to understand the costs and consequences of business behavior in the real world using empirical models, to help regulators avoid mistakes.
