The Swedish Competition Authority organized an international seminar in Stockholm on the 6th December 2013. Invited speakers and opponents gave their presentations on the topic: “The Pros & Cons of Counterfactuals”. The former chief economist of the Swedish Competition Authority, Professor Sten Nyberg (Stockholm University), was the moderator of the event. Professor Nyberg kicked off the proceedings by stressing the importance of counterfactual analysis in instances such as the recent Telia-Sonera case as well as cautioning the audience of the caveat that a casual application of counterfactual analysis may easily lead to too many degrees of freedom (economics jargon for “too many scenarios to choose from”).
The Pros and Cons of Counterfactuals