Simulation in Competitive Analysis
6 August 2008
By Dr. Gregory K. Leonard with J. Douglas Zona
Simulation is the use of a structural economic model to predict the effects of a change in economic conditions or policy. Simulation has wide application in competitive analysis, from merger review to the calculation of damages in antitrust and patent infringement litigation. It provides a scientific and quantitative approach that is a useful complement to making qualitative inferences based on a review of documents and other information. In this chapter from Issues in Competition Law and Policy, NERA Senior Vice President Dr. Gregory K. Leonard and J. Douglas Zona describe simulation methods and techniques with a particular emphasis on merger review, where simulation has been most widely used.
This chapter, from Issues in Competition Law and Policy, has been reproduced with permission from the American Bar Association. All rights reserved. This information or any portion thereof may not be copied or disseminated in any form or by any means or downloaded or stored in an electronic database or retrieval system without the express written consent of the American Bar Association.
