What is Ex Ante and Ex Post?
June 2018
Two ways of calculating damages are the Ex Post discounting and the Ex Ante discounting when calculating lost profits. The Ex Post methodology looks back to an event after it occurred and decides what to do to clean it up. The Ex Ante methodology involves looking forward and asking what effect the decision will have in the future. For example, let’s say I build a house, but by accident I build it 18 inches onto my neighbor’s property. What should we do about this?