Content
Economic analyses are regularly used in antitrust issues. If data analyses are used for this purpose, this is done with econometric methods and in many cases with a regression model. The aim of a regression model is to explain one or more endogenous (explained or dependent) variables by one or - as a rule - several exogenous (explanatory or independent) variables. Linear regression models whose parameters are empirically estimated using the Ordinary Least Squares (OLS) method are widely used. If another model is used, its form often has similarities with a linear regression model. Therefore, basic knowledge of the simple or multiple linear regression model is also helpful for understanding other regression models. This article explains how linear regression models work and some associated terms. First, the simple linear regression model is explained and then the multiple linear regression model. It then outlines individual key aspects for the reliability of the results obtained.
Keywords
Antitrust law
Competition economics
Econometrics