Index

Affordable Care Act, 117

Alcohol, 27–28, 138

Amazon, 135

American social contract, 3, 8

American Time Use Survey (ATUS), 113

Antitrust cases, 87, 141

Apple Inc., 135

ATUS. See American Time Use Survey (ATUS)

Baker biker, 115–117

Bakery’s contract, 83

Black–Scholes model, 66

Blue chip case, 54–57, 60

Blue collar

loss, 49

worker, 49

Burger King, 139, 140

Business liability

example to, 13–14

forms, 8–9

harm, 60

insurance, 5–8

legal system, 9–13

society/insurer, 7

sources of, 3

Cheap eats, 139–141

Colluding gas stations, profit of, 133

Collusion, 129–136, 142–146

Competition, antitrust and harm to

collusion, 129–136

competitive marketplace, 121–129

economic damages, 141–146

foreclosure, 136–138

multimarket antitrust economics, 138–141

Competitive equilibrium, 122–123, 125, 129

Competitive marketplace, 121–129

Consumer surplus, 124–125

Consumption, 24–27

Contract law, 14, 88

Court’s eyes, 75–79

Damn lies evidence, 90–92

Deadweight loss, 126

Demand and supply, 124–125

Downstream market, 140

Earnings and returns, 53, 54

Economic

damages, 79–83

expert, 101

harms, 30, 38, 41, 44, 46–48, 51, 58, 60–63, 72, 74, 75

loss, 19–23

consumption, 24–27

economic damages, 31–34

economic opportunity, 19–23

externality, 27–28

legal system, 31–34

market principles, 28–31

utility, 24–27

model, 116–117, 120

opportunity, 19–23

Economist’s voice, 86–89

Evidence damages, 79–83

Expected sales, 92

Externality, 27–28

Farm loss, 28–31, 43–44

Federal Rules of Evidence, 78, 79

Firms, 129, 131, 134, 137, 139, 140, 142, 145

First Fundamental Welfare Theorem, 122

Foreclosure, 136–138

Forensic economist, 101–102

Friedman, David, 91

Fuzzy evidence, 92–97

Gas station twins, 130–135

Google’s android problem, 137–138

Hedonic damages, 93

Hidden spiders, 76–79

Highest utility U(C), 43

High-stakes cases, 86–87

Horizontal linkages, 138–139

Household services, 112–114

Human capital, 121

Hump-shaped function, 131

Insurance, 5–8

claim, 74, 75, 79, 99

Insurer’s eyes, 73–75

Intellectual property loss, 14

Intentional harm, 79

Inverse demand, 133

Land developer, 61–62, 64–66

Lawsuit, 7, 12, 13, 14, 32, 33, 38, 42, 73, 77, 78, 81, 87, 99, 141

Legal system, 9–13, 31–34

Liability evidence, 90–92

Life care plan, 115–117

Limited liability company (LLC), 8

Limited liability partnership (LLP), 8

LLC. See Limited liability company (LLC)

LLP. See Limited liability partnership (LLP)

Loss, 19–23

compensation for

court’s approach to, 38–42

market approach to, 42–44

options, 60–66

price formulas, 44–47

return, implicit rate of, 59–60

risk, 47–59

evidence of

court’s eyes, 75–79

damn lies evidence, 90–92

economic damages, 79–83

economist’s voice, 86–89

evidence damages, 79–83

fuzzy evidence, 92–97

insurer’s eyes, 73–75

liability evidence, 90–92

scientific evidence, 89–90

statistics evidence, 90–92

taxing matter, 83–85

workers and families

household services, 112–114

life care plan, 115–117

personal consumption, 114–115

worklife expectancy, 108–112

Lost contract, 81–83

Malpractice, 93–94

Market principles, 28–31, 44–45

McDonald’s, 139, 140

Mean and standard deviation, 54

Methodology, 78

Modern market-based economy, 37

Monopolistic, 120

Monopoly

deadweight loss, 144

market, 133

Multimarket antitrust economics, 138–141

NASA. See National Aeronautics and Space Administration (NASA)

National Aeronautics and Space Administration (NASA), 137

Nature, states of, 24, 51–52

Oligopoly, 130, 138

Personal consumption, 114–115

Personal injury, 14, 84, 85, 87, 89, 93, 94, 96, 108, 113

economic damages, 89

economist in, 99–105

present value, 89

Pop star loss, 48

Present value, 51, 59, 60, 70, 81, 84–85, 89, 93, 116

Price formulas, 44–47

Pricey e-books, 135–136

Producer surplus, 126

Profit maximization, 132

Pulp fiction market, 123–129

Real-life harm assessment, 44

Resale price maintenance, 139

Risk, 47–59

-averse asset pricing, 68–70

-neutral pricing model, 59

Risky and riskless, 53

Robinson Crusoe, 25–26

Rum Ruin, 58–59

Scientific evidence, 89–90

Sharpe ratio, 55–56

Sherman Act, 130

Sherman Antitrust Act, 122

Social

contract, 2–4, 6, 9, 10, 26, 31–32, 37, 40, 41

utility U(C), 39

welfare, 26, 38–40, 92

Societal harm, 28

Society

business’s relationships, 18

corporate liability to, 9

utility U(C), 26–28

Stake cases, 87

Statistics evidence, 90–92

Taxing matter, 83–85

U.S.

Federal Rules of Evidence, 77

Postal Service, 137

Social Security program, 108

Unintentional harm, 73

Utility, 24–27

function U(C), 39–40

number U(C), 24–27, 39

Value of a statistical life (VSL), 95–96

Vertical linkages, 138–139

Warehouse club bust, 62–64

Window washer, 95–97

Worklife expectancy, 108–112

Wrongful death, 14, 87, 112–115

Wrongful termination, 14, 88, 91

Yardstick market, 143, 145, 146