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Upward Pricing Pressure in Two-Sided Markets
TILEC Discussion Paper No. 2012-029
two-sided markets, network effects, UPP
Share the risk : access to Next Generation Networks
E.CA Compact
NGA Networks, access regulation

The telecommunications industry is currently in the midst of a disruptive technological upheaval. Next Generation Networks (NGN) enable higher Internet bandwidths and new applications. However, NGN deployment depends on the conditions under which investors have to grant their competitors access to the new infrastructure. This note describes how E.CA modelled different regulatory regimes for access to NGN and compared the outcomes in terms of consumer welfare.

PDF icon Share the risk : access to Next Generation Networks(application/pdf 115.7 KB)
Regional Aid Guidelines and Large Investment Projects
Presentation at the 10th Experts' Forum on New Developments in European State Aid Law, Brussels, 8 June 2012.
regional aid, investment project
Predicting the future: How pricing regulation affects drug development
E.CA Compact
price regulation, innovation

In an effort to contain healthcare costs, governments around the world are imposing increasingly stricter pricing and reimbursement conditions in particular one "me-too" medicines. We study the consequences that this may have on pharmaceutical innovation in the context of a dynamic model of drug development. Our simulations show that the negative effects of price regulation on drug development are economically significant.

PDF icon Predicting the future: How pricing regulation affects drug development (application/pdf 153.5 KB)
Owner Effect and Sunk Investments
Europäische Zeitschrift für Wirtschaftsrecht, issue 11/2012: 408-413.
Ulrich Soltész
owner effect, sunk investments
Materielle Fusionskontrolle : Leitfaden und 8. GWB-Novelle
Presentation at the Studienvereinigung Kartellrecht,18 October 2012, Berlin.
LGI's Acquisition of KBW - Effects on Competition and Bargaining Power
Bates White's Ninth Annual Antitrust Conference, 7 June 2012, Washington.
Bargaining Power
How to deal with price wars in cartel damages estimations?
E.CA Compact
price wars, damage estimation

A standard approach to damages estimation is to compare prices during the cartel period with prices before or after. However, it is not uncommon to see prices wars right after the cartel breaks down. As price wars are characterised by prices below the competitive level, an inclusion of price wars in the comparison period can lead to overcharges that are too high. This E.CA Compact explains how we modelled the price war period in the example of a German cement cartel.

PDF icon How to deal with price wars in cartel damages estimations(application/pdf 137.4 KB)
Estimating network effects in two-sided markets without data on prices and quantities
Economics Letters, Volume 117, Issue 3, December 2012 , Pages 585-588.
Two-sided markets; Network effects; Semi-structural model
Efficiencies as a Meaningful Defence in Merger Control
Presentation at the Interdisciplinary Centre for Competition Law and Policy (ICC) and Crowell and Moring LPP Annual Conference, 15 June 2012, Brussels.
efficiencies, merger control