Vice President
CapAnalysis
Contact Information
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LudwickR@capanalysis.com
Dr. Ludwick has 16 years of economic and litigation experience, focusing on the economics of antitrust, mergers and acquisitions, complex commercial litigation, class certification, estimation of damages and regulatory issues. He has testified as an economic expert in U.S. district court and presented analyses before the Federal Trade Commission, Department of Justice and other regulatory agencies.
He has provided crucial economic analyses in many high-profile antitrust and merger-related cases including the application of econometric and quantitative analyses for assessing market definition, competitive effects, entry/repositioning, class certification, liability, damages and regulatory impact. Dr. Ludwick has provided economic analyses involving mergers, monopolization, attempted monopolization, horizontal and vertical restraints, boycotts, tying, exclusive dealing, breach of contract and unfair competition. He has also submitted economic impact analyses to the Treasury Department and Export-Import Bank and comments regarding proposed regulation to the Federal Communications Commission and the Department of Housing and Urban Development.
Dr. Ludwick has studied the economics of a broad range of industries including trucking, construction equipment, automobile manufacturing, oil field equipment, mining, household appliances, microprocessors, industrial gas, cable TV, food retailing, real estate, multiple listing services, book selling, new vehicle retailing, chemicals, tobacco, NASCAR auto racing, Naval shipbuilding, commercial aircraft, toys, dentures, funeral homes and healthcare markets including hospital services, health insurers, physician services and pharmaceuticals.
Education
Johns Hopkins University, PhD, Economics, 1993
Gettysburg College, BA, Economics, cum laude, 1973
REPRESENTATIVE CASES
Highlights
The Economic Contributions of YRC Worldwide Inc. to the U.S. Economywith Timothy Day and Mark Glueck, U.S. Treasury Department submission accompanying its application for TARP funds, May 18, 2009.
Klickads, Inc. d//b/a BrokersNYC v. Real Estate Board of New York, et al. New York City multiple listing service monopolization litigation. Economic expert for Plaintiff. Provided Expert Damages Report, Summary Judgment Declaration and Deposition Testimony. Case was settled favorably for Plaintiff, 2007.
Affiliated Business Arrangements and Their Effects on Residential Real Estate Settlement Costs: An Economic Analysiswith Donald L. Martin, on behalf of Real Estate Service Providers Council, Inc., HUD submission, October, 2006. Designed and implemented econometric study and co-authored report evaluating affiliated business arrangements and their effects on residential real estate settlement costs. Study significantly impacted the industry debate and HUD’s and GAO’s evaluation of affiliated business arrangements, resulting in HUD deciding not to further regulate real estate affiliated business arrangements.
The FCC’s Further Report on a La Carte Pricing of Cable Televisionwith Jeffery A. Eisenach, FCC submission, March 2006. The report provided a critical economic analysis of the FCC’s proposal to require a la carte pricing by cable TV operators. The FCC did not adopt the proposal.
The EX-IM Bank’s Proposal to Subsidize the Sale of Semiconductor Manufacturing Equipment to China: An Economic Impact Analysiswith James C. Miller III, Jeffery A. Eisenach and Oliver Grawe, Export-Import Bank submission on behalf of Micron, January 2005 and November 2005 Update. Economic study based on Ex-Im Bank’s Economic Impact Analysis framework which demonstrated that an EX-IM Bank proposed subsidy would harm the U.S. semiconductor industry, resulting in the EM-IM Bank to withdraw its subsidy proposal.
Highmark/Independence Blue Cross Health Insurance MergerHealth insurer merger. Developed white paper responses to Pennsylvania Insurance Department information requests and reports of Department’s economic and financial experts concerning market definition, concentration, health insurance competitive effects, provider monopsonization, cognizable efficiencies. (2007-2009).
In Re New Motor Vehicles Canadian Export Antitrust LitigationNew motor vehicle export restraint conspiracy class action litigation. Chief litigation support economist for Ford’s economic expert for evaluating the merits of the Plaintiff’s liability case. Appeals court rescinded class certification. (2005-2008).
Whirlpool/Maytag MergerPerformed econometric analyses that resulted in the DOJ crediting so-called fixed cost savings (SG&A) as being largely variable and cognizable efficiencies. Designed and implemented econometric studies to demonstrate no price discrimination by Whirlpool in the selling of appliances to retailers and limited substitutability between Whirlpool’s and Maytag’s top load washing machines. DOJ approved merger. (2005-2006).
D. Lamar DeLoach, et al. v. Philip Morris Inc., et alPrice-fixing conspiracy class-action litigation. Lead litigation support economist to plaintiff’s testifying economic expert in case alleging monopsony buying of U.S. grown tobacco leaf. Developed damage model in absence of a well-defined pre-conspiracy period, relevant benchmarks or yardsticks. Resulted in a settlement valued at more than $1 billion. (2003-2005).
U.S. v. Dentsply InternationalExclusive dealing litigation. Litigation support economist to defendant’s testifying economic expert in exclusive dealing case involving artificial teeth. Assisted in developing evidence for expert’s rebuttal report and development of expert’s direct and rebuttal trial testimony. (2002).
Case List
Airline Components Vertical Merger (GE/Honeywell) – In support of a third party competitor's opposition to merger before the European Competition Commission, analyzed and critiqued economic theories concerning GE's dominance of the airline avionics and engine manufacturing industries that would result from its proposed acquisition of Honeywell's avionics. Commission blocked merger. (2001).
Aluminum Tubing Merger (Insilco and Helima-Helvation) – Preparation of economic analysis to the FTC Commissioners. (1996-1997).
Bookseller Vertical Merger (Barnes and Noble/Ingram) – Analyzed for merging parties' counsel the antitrust issues related to the vertical merger of bookseller Barnes and Noble and book wholesaler Ingram. (1999).
Chemical Industry Merger (Sunoco/Aristech) – Developed and created presentation to FTC staff that identified potential chemical product markets and analyzed economic antitrust issues related to the merger. (2000).
DOJ Tobacco Litigation – Developed report and created economic model that analyzed the economic affect of possible settlement scenarios on particular cigarette producers. (1999).
Drug Wholesaling Mergers (FTC v. Cardinal Health, Inc. and Bergen Brunswig Corp.), (FTC v. McKesson Corp. and Amerisource Health Corp.) – Preparation and presentation of economic analysis to the FTC Commissioners, preparation of expert witness for preliminary injunction trial, preparation for cross-examination of defendant’s economic expert (1998).
Funeral Home Mergers (Loewen Group Inc.) – Preparation and presentation of economic analysis to the FTC Commissioners. (1996).
Information Technology Merger (EDS/MCIWorldcom) – Created and presented report for merging parties' counsel identifying potential economic antitrust issues related to the combination of information technology assets and private telecommunications networks. (1999).
NASCAR Racetrack Merger (International Speedway Corporation/Penske) – Created and presented various studies for merging parties' counsel, including an econometric event study analysis to assess the likelihood of anticompetitive effects resulting from the merger. (1999).
Naval Shipbuilder Mergers (Newport News Shipyard/General Dynamics), (Newport News Shipyard/Avondale Industries) – Prepared and presented economic report to the DOJ and Pentagon staff analyzing anticompetitive aspects of mergers related to Naval ship construction, maintenance and repair, and future R&D and innovation. (1999).
Other Horizontal Mergers – Preparation and presentation of economic analysis to the FTC Commissioners of mergers in the following industries: ultrasound imaging, cast iron sewer pipe, seismic acquisition systems, furnace burner management systems, fire alarms, gerotor motors, steel food cans, sewer cleaners, vacuum loaders, vacuum street sweepers, and radiologists, and physician/hospital organizations.
Pet Food Merger (Nestle/Ralston Purina) – Provided litigation support to defendant’s economic expert. Performed brand demand estimation and unilateral effects merger simulations, including multiple divestiture scenarios. Analyzed, econometrically studied and economically simulated competition between distribution channels (grocery, mass merchant, pet store) to demonstrate product market encompassed all distribution channels. (2001).
Physician Boycott (Physicians Group, Inc.) – Prepared and presented to FTC Commissioners economic analysis concerning physician boycott of an HMO health insurance plan. (1993).
Post-wildfire Environmental Damages (Federal Tort Claims Act - National Forest Service) – Plaintiff's economic expert. Developed unique damages model for estimating plaintiff's future environmental damages resulting from wildfires allegedly caused by NFS's backfiring. (2001-2002).
Prescription Drug Generic Entry (Schering-Plough, Upsher Smith Laboratories, American Home Products) – FTC administrative complaint of alleged illegal payments made by Schering to delay entry of generic versions of its potassium chloride supplement (K-Dur 20). Assisted in developing cross-examination questions for plaintiff's economic expert. (2002).
Purchased Assets Damages Case – Economic expert to plaintiff where a concealed price-fixing conspiracy resulted in their overpayment for certain purchased assets. Presented economic report that developed a unique damages model to assess the extent of the overpayment which resulted in multi-million dollar settlement for client. (2000).
Toy Industry Vertical Restraints (Toys "R" Us, Inc.) – Prepared and presented to FTC Commissioners economic analysis concerning the claim that Toys “R” Us induced major toy manufacturers to participate in a series of anticompetitive vertical agreements to restrict their sales to warehouse clubs and orchestrated horizontal agreements among the manufacturers to adhere to these restrictions. Preparation of economic experts for FTC administrative trial; preparation for cross-examination of defendant’s economic expert (1994-1997).
Vertical Merger of a Drug Manufacturer and Pharmacy Benefit Management Firm (Lilly and PCS) – Preparation and presentation of economic analysis to the FTC Commissioners. (1994).
Vitamin Price-fixing Class Action Case – Developed model to estimate recoverable damages under the class action settlement agreement with manufacturers of certain wholesale vitamins. Subsequently used by various purchasers of wholesale vitamins to estimate their recoverable damages. (2000).
FTC v. Butterworth Health Corporation and Blodgett Memorial Medical CenterHospital Mergers – Preparation and presentation of economic analysis to the FTC Commissioners, preparation of expert witness for preliminary injunction trial, preparation for cross-examination of defendant’s economic expert (1995-1996). (Columbia and HealthTrust) – Preparation and presentation of economic analysis to the FTC Commissioners (1994). Also, prepared and presented to the FTC Commissioners economic analyses of several other hospital mergers.
FTC v. H.J. Heinz Co. and Milnot Holding Corporation [Beechnut]Baby Food Manufacturer Merger – Litigation support economist to defendant’s testifying economic expert related to wholesale competition among baby food manufacturers. Developed and implemented econometrics model to analyze the effect of wholesale bidding for grocery store shelf space on the retail price of baby food. Studied the effect of wholesale competition on the variable and fixed components of the baby food manufacturer’s trade spending programs. Developed and implemented econometric models to assess the extent of retail competition between baby food manufacturers. (2000).
FTC v. Toys “R” Us, Inc. Toy industry vertical restraints. Precedent setting case claiming Toys “R” Us induced major toy manufacturers to participate in a series of anticompetitive vertical agreements to restrict their sales to warehouse clubs and orchestrated horizontal agreements among the manufacturers to adhere to these restrictions. Lead litigation support economist to FTC’s testifying economic expert at administrative trial. FTC won the case. (1994-1997).
Volvo v. Brunswick Marine, (1999), Stern-drive Boat Engine Damage Case – Chief economist in support of plaintiff's economic expert in a private damages case alleging defendant's exclusive dealing harmed plaintiff.
EXPERIENCE
Government Experience
Federal Trade Commission, Bureau of Economics, Staff Economist. Provided economic analyses of dozens of mergers and was lead litigation economist in many high-profile preliminary injunction trials and administrative hearings. . (1993 to 1998).
Academic/Research
Johns Hopkins University, Visiting Professor, Elements of Microeconomics, (1997 to 1998).
PROFESSIONAL ASSOCIATIONS
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