Who’s Who Legal interviewed Joanna Tsai of Cornerstone Research to gain her insights on working at the Federal Trade Commission, the evolution of merger analysis, and advice for aspiring competition economists.
Q: What do you enjoy most about your role as a competition economist?
A: I enjoy the process of shedding light on the relevant economic and competition questions for a given merger and industry, and—depending on the industry and the business—determining how best to apply economics to answer those questions. I enjoy working with end clients and counsel in doing so, to explain the mechanisms at issue and demonstrate the results clearly and logically.
Q: What are the key skills required to successfully deliver testimony in high-stakes, high-value cases as an economist?
A: In my view, delivering successful testimony and agency presentations requires the ability to identify and analyze the key issues in a given matter, and explain—clearly and thoughtfully—why those issues are important. It is also critical to be able to ground economic analyses in high-quality data and, when appropriate, to account for gaps or shortfalls in the data. No dataset is perfect, and ignoring potential imperfections in the data, rather than addressing them head on, diminishes an economist’s credibility.
Delivering successful testimony and agency presentations requires the ability to identify and analyze the key issues in a given matter, and explain—clearly and thoughtfully—why those issues are important.
Q: As cohead of Cornerstone Research’s merger investigations practice, how would you describe your leadership style and what are your goals for the practice’s development over the next five years?
A: My leadership style is about spotting and creating opportunities, inspiring others to pursue them with me, and supporting our many excellent colleagues to be involved and engaged in the firm’s merger work. With my cohead, Bob Majure, my goal is to continue developing Cornerstone Research’s thriving merger practice. I believe our firm stands at the forefront of many pressing issues in contemporary competition policy. We possess a deep bench of exceptional talent across our nine offices, which means we can enhance and expand the already superb services we provide to our clients.
Q: In what ways has your role as economic advisor to a commissioner at the Federal Trade Commission enhanced your practice as a competition economist?
A: When I served as an economic advisor at the FTC, I had already worked for ten years as a consulting economist in the private sector. With that experience under my belt, my time at the Commission showed me how and why the agency makes its decisions and the various considerations it brings to bear. I developed an understanding of what the agencies find relevant, productive, and helpful. I also learned how to work effectively with agency economists and lawyers. It was an honor to work alongside the FTC’s economic and legal professionals, who are among the world’s best.
Q: What is the greatest challenge currently faced by competition economists and how can it be effectively tackled?
A: I believe that one of the great challenges that competition economists face today is how best to connect with judges and decision-makers at the agencies and to explain the economics relevant to the case at hand. Some decision-makers have noted in the past that sometimes economists would present conclusions that were valid only if you looked to the third (or sixth!) decimal place or imposed a particular assumption. It is impossible to overstate the importance of conducting sensitivity checks for economic analyses. Understanding how an economic model might or might not be sensitive to certain assumptions is essential to productive conversations with the agencies and in the courts. Explaining how the economics and the results of the analyses are relevant and robust is also critically important, especially when presenting to generalist judges.
Q: What makes Cornerstone Research stand out from its competitors in the market?
A: Cornerstone Research is home to hundreds of outstanding economists who consistently deliver high-quality analyses to our clients. There are no cookie-cutter solutions in complex matters. We provide a customized and creative response to each challenge.
Q: How has merger analysis evolved since you started practicing, and how do you think it will change in the near future?
A: Merger analysis has evolved significantly since I started practicing. The first version of the merger guidelines I worked with dated from 1997. Since then, I have seen the issuance and implementation of the 2010 guidelines and, of course, the 2023 draft merger guidelines. The agencies are continually sharpening analyses of various issues related to mergers and striving to accommodate changes in our world. Many thoughtful comments were submitted to the FTC and the Department of Justice in the latest review of the draft merger guidelines, and I look forward to the new perspectives that will arise in this next chapter of engagement with the agencies.
There are no cookie-cutter solutions in complex matters. We provide a customized and creative response to each challenge.
Q: What advice would you give to someone starting out in practice as a competition economist today?
A: Work on as many cases as you can. Exposure to different types of cases and issues at the start of your career will help you learn and discover what you are most passionate about. I have found my involvement in the American Bar Association’s Antitrust Section to be exceptionally rewarding, and I highly recommend that competition economists get involved in the Section as early as they are able.
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