A particularly sophisticated method for quantifying antitrust damages leverages Industrial Organization (IO) models that analyze the structure and behavior of markets to provide a rigorous framework for estimating how competition distortions affect market outcomes.

When a firm’s anti-competitive behavior distorts market dynamics it leads to measurable economic harm. Financial analysis-based techniques bring precision and clarity to calculating damages by leveraging tools like regression analysis, market simulations, and discounted cash flow models.

One of the most widely used approaches for estimating antitrust damages involves comparator-based methods, which rely on comparing the actual scenario to a counterfactual—what would have happened if the infringement hadn't occurred.

The process of quantifying damages is both complex and crucial, and among other qualitative considerations it also involves estimating the economic harm suffered, which often requires sophisticated economic modeling and expert analysis.

To apply accurate analysis on conduct in markets, we need to define what we would identify as a market first. As obvious as this sounds, this can be a very difficult process depending on the situation. Market definition is one of the most crucial stages of any antitrust investigation.