Antitrust & Competition

Cirque Analytics’ team of economists and data analysts have extensive expertise in class certification and damages analyses, gained from experience on some of the largest antitrust class action cases across a variety of industries and product markets. Based on thorough data analysis and advanced econometric techniques, our economists evaluate whether the alleged anti-competitive behavior has had a uniform impact on the proposed class, while addressing key class certification challenges, such as issues of ascertainability, commonality, numerosity, and typicality. Lastly, quantifying damages

Economists at Cirque Analytics evaluate price-fixing allegations by analyzing both market data and firm behavior. We examine pricing patterns, market structure, transaction records, and competitor communications to identify anomalies—like uniform price increases across competitors—that suggest collusion rather than independent action. We then utilize that analysis, as well as critical statistical and economic methods to address questions such as common impact, liability, and damages quantification.

We have worked closely with clients and counsel to develop sophisticated analyses and provide key testimony in numerous antitrust cases involving claims of price-fixing. Our work in this area has been favorably cited by courts, received industry awards, and spans a broad range of industries and markets. For example, in recent years Cirque’s economists have been involved in price-fixing litigations related to agricultural and food products (e.g., broiler chickens, pork, packaged seafood, packaged ramen), healthcare services, interior molded doors, telescopes, ready-mix concrete, and many other industries. We have conducted analyses related to both overcharges and pass-through in many cases, working with plaintiffs, defendants, and third-parties.

Expert economic analysis is a critical input to matters involving allegations of market allocation. Market allocation typically involves an agreement among competitors to divide territories, customers, or product lines, thereby undermining competition and harming purchasers. To address such allegations, Cirque Analytics investigates changes in market structures, customer and sales records, profit margins, and other indicators of collusion. Where there is evidence of market allocation, we assess the impact of anticompetitive conduct on prices in the relevant market, estimate damages, and offer clear and convincing trial testimony.

Monopoly and monopsony are both market structures defined by a single dominant player, but they differ in who holds the power and how it affects the market. In a monopoly, a single seller faces many buyers within a relevant market. Without competitive pressure, a monopolist may be able to earn supracompetitive profits, while buyers face reduced choice and higher prices. In a monopsony, the situation is reversed–a single buyer faces many sellers. If the buyer forces suppliers to lower prices, it may lead to reduced supply-side innovation, lower output, and lower overall wellfare for both supplier and downstream customers. Cirque Analytics is frequently retained in matters involving allegations of increased concentration in a market, whether on the buyer or seller side. Through deep analysis of market structures, pricing trends, profit margins, and firms’ strategic behavior, Cirque Analytics is able to provide  expert opinions on questions related to common impact, liablity, and damages. 

Many antitrust cases involve analysis of competitive impact at both the direct and the indirect purchaser level. When evaluating impact to indirect purchasers, economists must typically demonstrate impact to direct purchasers and then demonstrate that the impact was passed through (in total or in part) to downstream customers. Thus, in addition to the substantial difficulties associated with analyzing defendant sales or production data, demonstrating pass-through requires additional regression analysis to show that cost increases at the direct purchaser level caused corresponding increases in price downstream. This additional step involves working with clients and counsel to procure purchase and sales data from third parties who bought the affected producted from defendants. Commonly, these data sets are very large and span numerous years and come from different companies with varied record-keeping practices. Thus, the process of procuring and preparing such data for use in a pass-through analysis can be very time-consuming and, if not approached properly, very costly.

Cirque Analytics has conducted pass-through analysis in numerous class-action antitrust cases in a variety of industries and product markets. We work closely with our clients to identify the appropriate sources of data (e.g., third parties), assist with drafting data requests, and communicate with third-parties regarding the process of procuring the necessary data. Due to the nature of modern antitrust cases, conducting a pass-through analysis often requires significant data management and storage capabilities, as well as superior computing power. Cirque Analytics excels in all of these areas.

Bid-rigging is a form of fraud and collusion that occurs when competitors agree on who will win a bidding process, thereby undermining the competitive bidding system. Successful bid-rigging schemes may inflate prices and harm customers, non-collusive competitors, and other stakeholders that rely on competitive bids to get the best goods and services at the lowest prices. 

The economists at Cirque Analytics bring decades of combined experience to study and analyze instances of alleged bid-rigging in the marketplace. Through sophisticated econometric, financial, and statistical analysis of prices, profits, and firm behavior, Cirque’s experts provide rigorous and realiable solutions to assess market impact. 

In an effort to increase profits, firms may resort to practices such as tying or bundling. These practices both involve leveraging one product to cause an increase in sales of another product. Depending on the degree of market power firms possess, such practices can have negative effects on competition and utlimately the prices paid by customers for goods and services. By combining sophisticated financial and econometric techniques, market research, and evidence produced in discovery, Cirque Analytics provides expert opinions and analysis of the impact of anticompetitive sales tactics, including damages quantification and determinations of common impact.

Pay-for-delay schemes, also known as reverse payment settlements, often occur when a brand-name pharmaceutical company pays a generic drug manufacturer to delay entering the market with a cheaper generic version of a drug. This practice can significantly impact competition and consumer prices, and is a major focus in antitrust analysis. 

With its deep expertise in both competition and intellectual property, Cirque Analytics is strongly positioned to directly analyze the market impact of pay-for-delay schemes on prices, competition, and innovation.

In economics, the term “market power” relates to the ability of a firm–or a group of firms–to influence prices, output, or other important market conditions in ways that would not exist with perfect competition. With market power, a firm is shielded from competitive constraints. For example, on the selling side, a firm with market power may be able to raise its prices without losing customers to rivals. On the buying side, a firm with market power may be able to surpress wages to employees without risk of losing them to other firms.  An important part of assessing market power is the determination of a “relevant market.” In economics, the relevant market is the products or services and geographic areas that constrain a firm’s ability to flex market power. 

Econonomists at Cirque Analytics are well-versed in addressing questions related to market definitions and the existence and use of market power. Through statistical and financial analysis, as well as legal standards such as the “hypothetical monopolist” test and “small but significant and non-transitory increase in price” (or “SSNIP”) test, we provide sound research and expert opinions that can assist in antitrust litigation. 

Cirque Analytics is often retained by top law firms to conduct “pre-studies” before litigation commences. Pre-studies are essentially a diagnostic or scoping analysis to help assess a potential case’s economic merits, identify key issues, and map out a strategy for future litigation. Pre-studies include in-depth analysis of publicly available data and information related to specific industries and firms of interest to assess market sizes and structures, evidence of market power, parallel conduct, and other indicators of anticompetitive conduct. Using pre-studies prepared by Cirque Analytics, stakeholders are able to make more informed decisions about pursuing litigation, and often include results in complaints filed with the Court.

Many antitrust cases involve scores of very large datasets from numerous different sources, including plaintiffs, defendants, third-parties, and government data warehouses. Critically, because the data produced in antitrust cases comes from different sources, it often comes in a variety of formats with different field names, and data storage conventions. Reconciling the differences across multiple firm’s sales, cost, and production data can be a complex and enormous undertaking. In data-driven antitrust cases, however, the quality and reliability of large and varied transactional datasets is paramount to conducting robust and reliable economic analysis.

Through the combination of state-of-the-art data storage and processing capabilities, extensive economic and data handling experience, and thorough knowledge of key issues in antitrust litigation, Cirque Analytics is uniquely qualified to assist clients throughout the data production process. We help clients identify the necessary data, draft production requests, process the data upon production, and work with providers and parties to the litigation to resolve questions and inconsistencies in the data.

Data processing for antitrust cases can be a time-consuming and expensive endeavor. Thus, while Cirque Analytics is often asked to prepare data for its own use, we are also retained to process, store, and disseminate data for other parties to the litigation. In this way, the costs and efforts involved in data preparation are not repeated by each individual party to a litigation. In such instances, Cirque’s team works closely with other economists and legal teams to ensure that each party’s data requirements are appropriately addressed.