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| (150) | Another simplified approach may be to use insights from economic theory to estimate the volume effect. Such an approach may be based on the price set by the direct purchaser during the infringement period (the passing-on related price effect) and the counterfactual volume. Since a firm's ability to raise prices depends on how price sensitive the demand for its product is, an inverse relationship is normally predicted between a firm's margin and the own-price elasticity of demand. Drawing on this, the own-price elasticity and the counterfactual margin can be ‘cancelled out’. Since information on the price set by the direct purchaser (the passing-on related price effect) will already be available at this stage of a case, the only additional input required in order to estimate the volume effect is the counterfactual volume.
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Source: EUR-Lex (Cellar) · retrieved 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.