The Potential Drivers—Predicting ITA Costs

Abstract

Many variables could, in theory, be linked to ITA costs. Chapter 8 explores various possibilities with an eye toward explaining ITA costs for potential prediction. While modeling ITA costs involves a trade-off, namely an under-specification of non-identifiable costs that are challenging to measure reliably, it focuses on direct, tangible fiscal elements to aid risk management for parties, counsel, and other stakeholders. As there has never before been any explanatory modeling of ITA costs, the chapter offers a novel perspective. It first sets the stage by identifying the tight (perhaps expected) link between costs of parties’ counsel and the tribunal. Second, it explores cost linkages to the starting and end points of ITA, namely amounts claimed and outcomes. It then focuses on core demographics from earlier chapters to identify non-significant and significant cost predictors. Finally, it offers a descriptive model that partially explains the variance of the distinct ITA costs.