§5.2.3 The simulation approach

(132) The Practical Guide also introduces a so-called simulation approach as another way of quantifying harm of a competition law infringement (104). This approach can also be used to estimate the passing-on related price and volume effect. It simultaneously accounts for the passing-on related price and volume effects. In order to employ this method, an economic expert will need to develop a model of competition at the stage of the distribution chain where the claimant is active, and simulate the effect of the relevant overcharge on the claimant's profit during the infringement period. For instance, the economic expert may test how different curvatures of the demand curve may affect the degree of passing-on. Based on the specifications of the demand side and the supply side, the equilibrium prices in the relevant market can be calculated. Furthermore, in a next step, it is possible to evaluate how these prices are affected by an overcharge. (133) It is important for a judge to be aware that this approach requires extensive data on prices and quantity in the market concerned. Furthermore, it rests on assumptions about firms' and consumers' behaviour, which may go too far and might be difficult to validate. Hence, it may in many cases be difficult to meet the required standard of proof under applicable law when applying this method.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-07