Estimating Damages in a Class Action Litigation |
| |
| Authors: | Edward I. George William E. Wecker |
| |
| Affiliation: | 1. Graduate School of Business, University of Chicago , Chicago , IL , 60637;2. Graduate School of Administration, University of California , Davis , CA , 95616 |
| |
| Abstract: | In a class action litigation, actual damages are not known exactly and must be estimated. Various estimators are proposed and assessed by using a model that identifies possible sources of error. Estimators that have been used in practice are shown to be seriously biased. An empirical Bayes estimator and an empirical minimal mean squared error estimator are found to be more satisfactory methods for estimating damages. |
| |
| Keywords: | Empirical Bayes estimation Minimal mean squared error estimation |
|
|
