Litigative Economics

RRC has extensive experience in assisting attorneys in relating complex legal matters to economic, financial, and statistical evidence. RRC has been successful in the analysis of issues such as contract violations, product liability and warranty, theft of trade secrets, discrimination, monopolization, price-fixing, monopsony purchasing, boycotts, licensing restrictions, and damage theories. Often economic evidence suggests a line of argument, supported by sound economic theory, which narrows
the scope of a case and offers an efficient, effective avenue for successful litigation. 

Damage Theory and Measurement

The measurement of damages should be derived from a consistent damage theory. Too often parties either misunderstand the sources of damages or seriously impair credibility when expanding damage estimates. Lost profits often entail an analysis of opportunities foregone, evaluated in the context of industry growth. Firm capacity is sometimes viewed as fixed over an extended period when, in fact, firms alter capacity as growth opportunities appear. Measurement of future damages always brings into question the relation between inflation and the discount rate. Since RRC forecasts both inflation and interest rates for non-litigation related clients, the development of proper discounting methods is viewed with an added element of objectivity. Consideration of risk adjustments and formulation of the correct risk-adjusted discounted profit stream are performed when appropriate.