CRA consultants advised counsel to an executive of a chemical company who was accused by the Department of Justice of participating in an alleged bid-rigging conspiracy to allocate customers in the liquid aluminum sulfate (“alum”) industry. The team submitted an expert report that contained an analysis of bid data designed to empirically test the economic implications of the conspiracy theory that formed the basis of the key allegations against the executive. In November 2017, a few weeks after the expert report was submitted, the DOJ dismissed the criminal charges against the executive.
Merger simulation in second-score auctions: A nested logit model
In a recent Economics Letters article, CRA’s Martino De Stefano and Serge Moresi show how to improve the second-score auction model that is often used to...