“To the extent that either the markets or firms being compared are dissimilar, the yardstick theory will not produce a trustworthy estimate of what the plaintiff would have earned but for the defendant’s conduct. The method therefore works best in markets that are both local and relatively homogeneous.” Herbert Hovenkamp, Economics and Federal Antitrust Law § 16.7, at 454 (1985).
yardstick theory
yardstick theory. Antitrust. A method of determining damages for lost profits (and sometimes overcharges) whereby a corporate plaintiff identifies a company similar to the plaintiff but without the impact of the antitrust violation. Cf. BEFORE-AND-AFTER THEORY; MARKET-SHARE THEORY.
