The role of contract structure for damage quantification: pitfalls and solutions

Florian Deuflhard and Robert Lauer

European Competition Journal, 2022, vol. 18, issue 3, 591-613

Abstract: Damage quantification in antitrust cases typically revolves around overcharge and pass-on estimation. In vertical industry structures, both measures crucially depend on contract structure, with linear and two-part tariffs being the most common contract types. While most of the damages literature focuses on linear contracts, two-part tariffs are mostly neglected. We discuss implications of tariff structure for damage quantification, highlight common pitfalls and propose practical solutions in damage assessment when two-part tariffs are present.

Date: 2022
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DOI: 10.1080/17441056.2022.2056345

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