The size of damage awards in court cases has become a major concern of ,1 i , ^ the insurance industry, of many persons, corporations, and local governments unable to insure themselves economically, and state and federal legislative bodies. The accuracy and equity of estimated damages and corresponding awards have the greatest impact on the plaintiffs and defendants involved in business liability or personal injury cases, but can also play a role in prolonging litigation when estimates of damages differ greatly, even though liability is clearly established. After liability is established in the courts for losses sustained due to the actions of another party, there must be determination of the appropriate compensation. Often these losses can be substantial as well as complex to estimate. In this paper, we offer some - ' . , I C . I approaches to estimating damages that may lead to more accurate and equitable damage awards.
Schroeder, Ted C. and Hayenga, Marvin L., "Economic Issues in Damage Estimation" (1986). Economic Staff Paper Series. 27.