Economic Elements of Class Certification
1 July 2004
By Todd Morrison
When individual differences matter, an inquiry that focuses on the average provides little, if any, valuable insight. However, in courtrooms around the country, proof that a group of customers has been harmed is often based on claims that injury can be determined using general statistical or benchmark models. Although such quantitative models can be extremely valuable when properly applied, they can lead one to overlook unique and important differences among customers that can lead to harm for some of them, but not for all. In the class certification phase of an antitrust litigation, these differences can be decisive.
In this chapter from Economics of Antitrust: New Issues, Questions, and Insights, NERA Senior Vice President Todd Morrison discusses the empirical issues that often arise in the economic analysis presented to the courts for purposes of class certification. As Mr. Morrison explains, a careful analysis of impact in a class action lawsuit requires a thorough understanding of the product or service at issue, the variety of pricing practices that determine the prices actually paid by customers, and the nature of the alleged conspiracy.
