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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Vertical coordination through renegotiation

Özlem Bedre-Defolie published an article in the International Journal of Industrial Organization 30(6): 553-563.

The paper analyses the strategic use of bilateral supply contracts in sequential negotiations between one manufacturer and two differentiated retailers.

The external abstract can be viewed here.

New publication on competition law in regulated industries by E.CA staff

Rainer Nitsche, Lars Wiethaus

In recent years, competition authorities have applied general competition rules in regulated industries, in addition to or instead of the regulation there in force. This raises issues as the two sets of rules are not necessarily identical and the authorities in charge of applying them do not always pursue the same objectives. This article proposes criteria helping to distinguish cases in which competition law is likely to be a more or less useful complement to regulation. As for cases in which competition law may, in principle, be useful, the authors argue for an intervention that accounts for the objectives set by regulation.

Read the publication on the Journal of European Competition Law & Practice website

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

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.

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.

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.

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.


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:

See E.CA's report on Ofcom’s website:

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.

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.