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Really, since when doesn’t price matter?  We are talking economics, right?

In a case involving individual distributors in a multi-level-marketing (MLM) industry, the plaintiff’s economic expert sought to estimate the number of would-be distributors the manufacturer would have in its distributor force, in the absence of alleged disparaging remarks and literature. An economic model was developed and an estimating equation was presented as the basis for quantifying the “missing” distributors. Lost sales were directly linked to the missing distributors.

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When does the expert’s conjuring leave you seeing stars?

Posted By admin onFebruary 11, 2017 at 10:27 am
When does the expert’s conjuring leave you seeing stars?

In an antitrust case, the plaintiff claimed that one of defendant’s plants was not efficient and was pricing below average variable cost. An important component of variable cost was transportation expense, measured by transport time of delivery trucks. A computerized transmitter had been installed in each truck so that the home station could receive transport times. Monthly summaries were produced for each plant as part of the regular reporting schedule.

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When is a shortcut really a drag, or not?

Posted By admin onJanuary 28, 2017 at 10:28 am
When is a shortcut really a drag, or not?

A plaintiff’s economic expert was claiming that damages were to accrue over an extended period of time due to a permanently damaged reputation. A spreadsheet was used to list sales, costs, and resulting profits by month for over twenty years. The expert had altered and refined the spreadsheet several times.

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Can an expert really be disqualified by their own advocate?

Posted By admin onJanuary 11, 2017 at 10:29 am
Can an expert really be disqualified by their own advocate?

The case involved a dispute between a retailer and the manufacturer. The plaintiff chose not to hire an economic expert, instead choosing to retain a CPA to submit a report in support of the claims of alleged economic damages. The plaintiff’s expert based her report upon multiple theories. The two initial alternative theories were (1) a before-after valuation approach designed to show the drop in value of the plaintiff’s business allegedly resulting from defendant’s actions and (2) a price-discrimination theory in which damages are calculated based on a comparison of actual and “but-for” price concessions.

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Is ignorance really ever bliss?

Posted By admin onDecember 15, 2016 at 10:24 am
Is ignorance really ever bliss?



The case involved a forecast of future medical expenses with an unknown life expectancy. The defense chose not to take the economist’s deposition and did not name an opposing economist to testify at trial. The plaintiff’s economist presented multiple damage calculations based upon differing life expectancies ranging from 6 years to 79 years with resulting damages ranging from $2 million to $63 million.

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When should the discipline of economics be left to the economists?

Posted By admin onNovember 28, 2016 at 10:22 am
When should the discipline of economics be left to the economists?

A plaintiff-dealer sought damages from a manufacturer on the grounds of price discrimination, claiming that the manufacturer sold inventory at discriminatory prices to dealers. The plaintiff’s expert was a computer scientist with no economics or statistics background.

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Can there ever be 12 million good reasons for an expert to be up close and intimate with the mechanics of his/her exhibit spreadsheets?

While at trial the plaintiff’s attorney during cross examination focused upon the spreadsheet used by the defense’s economic expert to allegedly prove that there were zero economic damages. The expert had relied heavily upon research assistants to construct the spreadsheet, but under the expert’s supervision. Unfortunately, the expert had not carefully examined the calculations and was not aware of several calculation errors.

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Perfect Found in Imperfect Economic Testimony – The Perfect Opportunity to Index Another Lesson Learned

There are times in which the economic expert is either unprepared or led into difficult positions where the unforeseen occurs. Likewise, there are times in which the cross examination opens the door for further damaging economic testimony. Over the years, we have learned some very valuable lessons, albeit at the expense of the opposition.

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Which do you prefer, an inventor or an economist?

Posted By admin onNovember 1, 2016 at 10:21 am
Which do you prefer, an inventor or an economist?

The plaintiff’s expert was considered to be a negotiations expert. He was formally trained in the law, but had no economic training. In a patent infringement suit, he “invented” a bargaining scenario which put the opposing side in an unrealistic and compromised position. His “invented” situation created extravagant damage amounts which were unable to be substantiated with any economic principles. After a finding of infringement, the jury awarded these damages to the plaintiff.

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