News

The work and analyses produced by E.CA is widely recognised and discussed by renowned newspapers and broadcasters. Please scroll through the following list to explore recent coverage and relevant firm news.

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24.01.2012
Article on access regulation and investment in next generation telephone networks

Rainer Nitsche, Lars Wiethaus

E.CA Economics published an article on access regulation and investment in next generation telephone networks in a top tier IO journal. Based on mathematical computing, the paper compares how different regulatory settings affect the development of high speed fibre networks. It is found that a traditional access regime in which an incumbent has to grant entrants cost-based access to its network would discourage investments into new networks to the detriment of consumers. In contrast, joint network developments in which incumbents and entrants share the risk of deploying fibre networks, whose profitability is yet uncertain, are likely to stimulate investments to the benefit of consumers.

View the abstract on the International Journal of Industrial Organization

05.01.2012
E.CA staff publish on market definition in shopping centre industry

Lars-Hendrik Röller, Jakub Kałużny, Rainer Nitsche

In light of some recent decisions by national competition authorities in Europe, the paper published in European Competition Journal considers how the choice of methodology impacts the product market definition in the shopping centre industry. It argues that relying predominantly on existing industry classifications and product characteristics is likely to lead to market definitions that are excessively narrow because these methodologies disregard actual substitutability patterns. Defined markets will be too narrow also if the effects of externalities common in the industry are ignored. The paper advocates that market definition following the standard SSNIP test logic while taking industry features into account is the superior approach.

View the abstract on the European Competition Journal.

14.12.2011
Article published on recent trends in competition economics in Germany

Hans W. Friederiszick, Rainer Nitsche
E.CA contributed to the 2012 GCR Handbook of Competition Economics with a country section on Germany. The article provides an overview of the institutional setting and enforcement output in Germany. It identifies Germany as one of the preferred jurisdictions for private litigation action within Europe, and predicts – due to recent case law - a richer set of economic tools being brought to use in the estimation of damages in order to empirically assess the pass-on effect.
Download the article.

07.11.2011
Gasoline price cycles no proof of collusion - Article in the German FAZ

In a recent news article in the Frankfurter Allgemeine Zeitung E.CA experts Dennis Beling and Hans W. Friederiszick discuss the consumer welfare implications of price fluctuations in German gasoline markets. The authors argue that price fluctuations are painful both for consumers and firms, but cannot be considered indicative of malfunctioning competition. To the opposite, recent empirical studies show that prices are lower in local gasoline markets with price cycles compared to markets where prices do not cycle. This effect becomes further aggravated if one takes into account that consumers respond strategically to price fluctuations, buying mainly when prices are low – a behaviour actually observable in gasoline markets in the city of Hamburg.

Download the article.

01.10.2011
Quantification of harm to competition by national courts and competition agencies
Hans W. Friederiszick and  Elisabeth Fugger wrote a background note for teh OECD Secretariat to theCompetition Committee (FR).
 
The note can be viewed here.

 

15.09.2011
Ofcom considers E.CA's report key for reaching a regulatory decision in the UK's telecoms markets.

Ofcom considers E.CA's report key for reaching a regulatory decision in the UK's telecoms markets.

Quoting as primary evidence a report prepared for Ofcom by Professor Gregory S. Crawford (University of Warwick) and E.CA Economics, the UK’s telecoms regulator made earlier this week the decision to prohibit automatically renewable contracts with residential and small business customers in the fixed voice and broadband sectors. On the basis of a rich dataset on BT’s fixed voice residential customers, the report had found that — accounting for a variety of other factors, including price discounts, tenure, bundling, and self-selection — automatically renewable contracts significantly reduce switching. This suggests that the contracts are harmful to consumers and effective competition.

See Ofcom’s statement on Ofcom’s website:
http://stakeholders.ofcom.org.uk/consultations/arcs/statement

See E.CA's report on Ofcom’s website:
http://stakeholders.ofcom.org.uk/binaries/consultations/arcs/annexes/Annex_07.pdf

17.08.2011
ESMT Competition Analysis becomes E.CA Economics

As of 17. August 2011 ESMT Competition Analysis has changed its name to E.CA Economics. The now independent economic consultancy is the international business school’s second successful spin-off, following MARGA in 2007. E.CA Economics has entered an exclusive partnership with ESMT European School of Management and Technology and will continue to work closely with members of the ESMT faculty on leading-edge research in industrial organization and quantitative methods.

Download the press release in EN and DE.

06.07.2011
Lars-Hendrik Röller appointed Chancellor Merkel's economic advisor

Lars-Hendrik Röller, Senior Advisor with ESMT Competition Analysis, has accepted a position as Director General of the Economic and Financial Policy Division of the German Federal Chancellery as of 1. July 2011. He is the successor of Jens Weidmann, who became President of the German Bundesbank.
Download the press release here.

29.06.2011
Defining product markets for shopping centers: Thoughts on methodological choices

Research paper by Jakub Kałużny, Rainer Nitsche and Lars-Hendrik Röller analyses how the choice of methodology impacts the product market definition in the shopping center industry. Relying only on product characteristics and existing industry classifications disregards actual substitutability patterns and may likely lead to market definitions that are too narrow. Ignoring the effects of externalities common in the industry has similar effect. Market definition should take these features into account, the paper argues.
Download the white paper here.

28.01.2011
ESMT Competition Analysis report presents pros and cons of net neutrality regulation

Comprehensive report by Hans W. Friederiszick, Jakub Kaluzny, Michal Grajek, Simone Kohnz, and Lars-Hendrik Röller and commissioned by Deutsche Telekom, identifies and analyses four profitable future Internet business models in terms of ability to handle increasing traffic volume and their social welfare implications.
Download the press release here.

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