The Role of Uncertainty In Economic Analysis

May 2026

Vice President Jonathan Borck discusses the role of uncertainty in economic analysis, highlighting how the degree of uncertainty can vary significantly across cases. In some instances, damages estimates may fall within a relatively narrow range, while in others, the range of possible outcomes may be wide – and may even include zero – making it critical for courts to understand the level of confidence in the results.  

Using a case involving a proposed shipping terminal in California, Dr. Borck discusses how a lost profits analysis that relies on a series of long-term assumptions, including those related to future events, market conditions, and policy stability, can be evaluated. 

He also addresses the broader challenges of evaluating hypothetical scenarios and projecting future outcomes, underscoring the importance of careful, transparent expert analysis in helping clients and courts navigate complex, high-stakes matters.