Economics can play an important role in litigation. Applying economic analysis both helps us to interpret the facts and to move beyond the facts and assess what might have happened—or might happen – in alternative scenarios. This makes economics a unique tool to answer many of the questions the Courts face.
At a glance
- Economic models cannot take account of every aspect in a market, but a good model captures the most salient features of a market and can thus assist the Courts in their determination of key aspects of cases.
- Litigators should involve economists early when the underlying economic issues are important to assess the relative merits of different lines of argument.
- Experts should apply an economic framework which is appropriate in light of the factual evidence, be transparent, engage constructively with the opposing expert, explain evidence clearly, and be independent.