Preface

• Pages: 17-20

xvii

PREFACE

Econometrics: Legal, Practical, and Technical Issues was born from

a concern that the increasing use of econometrics in antitrust was

creating an information gap between lawyers and economists, with

potential effects on the quality of judicial determinations based on

econometric evidence. In particular, econometricians were presenting

highly sophisticated and abstract mathematical models to lawyers, many

of whom were not schooled in these techniques and might not understand

their significance. Moreover, econometricians were relying upon data

that did not always accurately reflect the facts developed by the

witnesses and the lawyers. Consequently, there was a concern that

courts and agencies hearing antitrust matters might rely upon

econometric evidence without a full understanding of its limitations or

requirements, or might reject such evidence without recognizing its

merits.

Econometrics introduces readers to legal, practical, and technical

issues in econometrics so that they can better understand the econometric

analyses performed by their adversary or their own expert. This

information may help them present these issues to courts and agencies

more effectively.

The purpose of this book is not to enable lawyers to perform

econometric analysis, which is a highly technical field that requires a

detailed understanding of matrix algebra and statistical theory, but

simply to narrow the econometrics information gap. To that end, it

provides case studies in which the parties or the government used

econometric analysis. To make this volume as accessible as possible,

equations and detailed mathematical proofs are kept to a minimum in the

body of the text, with further detail in the appendices.