In this article in Antitrust Law Journal, Sean Durkin shows that the discount attribution test provides a simple, intuitive way to illustrate the procompetitive benefits of loyalty discounts. Using a model of competition implied by the discount attribution test, the article shows how competition can increase when sellers can offer loyalty discounts relative to a situation where they can only offer a single, unconditional price. The results of the model also highlight the flaws in claims often made by plaintiffs and their experts regarding the competitive effects of loyalty discounts.
New research on the use of conjoint surveys with market simulation analysis for damages estimation in consumer protection class action litigation
Market simulations that we have seen used in consumer protection class action litigation apply what is known as the static Nash Bertrand model of competition...