Each technique is discussed under three headings. First, each statistical test is described briefly. Secondly, comments on data requirements and ease of computation are added. Thirdly, the technique is discussed in terms of problems of interpretation. The latter heading is vital, as it is the interpretation of statistical relationships that is crucial in antitrust cases.
Economic significance can be different from statistical significance.
Before dealing with the various tests we also present an overview in Chapter 2 of the general uses and applications of quantitative techniques in US, UK and EU competition policy. This overview places the techniques that are examined in later chapters into a broader context and offers an illustration of the competition issues that typically require quantification using statistical and econometric tests. Throughout the report we include case studies that illustrate the applications of quantitative techniques. These case studies often deal with more than one technique and so should be read within the context of the entire report. However, they do illustrate how quantitative questions can be at the core of a case and its outcomes.