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Economic Consulting // Game 01

The Causal Confounder

Sales fell. Proving what caused it is the whole job.

You are the testifying economist. The other side has one too.

Northgate Retail is suing over a pricing policy it says destroyed its sales. Sales did fall. The entire case is whether the policy caused the fall - and how much of it.

DiDdifference the differences
PARALLEL TRENDSthe assumption that can break
CONFOUNDERSwhat else moved
DAMAGESthe number you defend

Interview lens: consulting cases are won on the alternative explanation you find before opposing counsel does. Anyone can subtract two numbers.