Analysis Group Managing Principals Pierre Cremieux and Aaron Yeater Publish Chapter in Global Antitrust Economics
June 27, 2016
Analysis Group Managing Principals Pierre Cremieux and Aaron Yeater recently published a chapter in Global Antitrust Economics – Current Issues in Antitrust and Law & Economics (Concurrences, March 2016), a compilation of material on five subjects presented at the Global Antitrust Economics Conference at George Mason University School of Law in May 2015.
In their chapter, “Use and Abuse: The Myth of Divided Antitrust Economics,” Dr. Cremieux and Mr. Yeater examine why, despite near-unanimous belief among economists that antitrust enforcement is both beneficial and a necessary component of any modern free-market economy, highly qualified economists appear on opposite sides of antitrust litigation in virtually every case. The authors laud the current state of “unprecedented” consensus among antitrust economists and present the argument that, in cases of disagreement among experts, economic misuse is to blame in only a small minority of cases. Instead, the authors argue that disagreement “reflects more subtle tensions in economists' beliefs about human behavior, organizational activities, firm characteristics, and market dynamics, which all influence their development of models that describe their economic reality and that help define but-for worlds.”
Though the differences in economists' assumptions or beliefs may be slight, the authors present examples illustrating how “economic experts working in good faith can and do reach vastly different conclusions,” even when they apply similar economic theory and econometrics to the same data sets.