Damage Estimation and Its Accuracy Antitrust Policy Implication *

This paper empirically estimates antitrust damage based on the rich information on cost factors in the bid-rigged Texas school milk market. Empirical results demonstrate that damage estimate by antitrust agency is a significantly underestimated amount of the true damage. This understatement of true harm inevitably includes implementation biases in the antitrust system. K21, L13, L40]