Regulation tools

We have worked with regulators, incumbents and entrants on a wide range of cases including:

 

  • Access pricing and margin squeeze
    We have extensive experience in analysing the substitution effects between different services and applying Ramsey pricing and other theoretical tools for the optimal regulation of monopolies to determine how access prices, price discrimination and potential margin squeezes affect competition in regulated industries such as telecommunications.
     
  • Cost concepts and pass-on
    In our work, we pay particular attention to different cost concepts such as marginal costs or average operating costs. Based on conceptual and empirical work we have analysed cost pass-on in regulated industries.
     
  • Long-term investment incentives
    Simulation, dynamic programming and econometric techniques allow us to arrive at the most robust assessment of the impact of regulation on firms' investment decisions and dynamic efficiencies. Examples comprise our studies in the telecommunications industry and in the pharmaceutical sector.
     
  • Essential facilities
    We have provided economic assessment of specific theories of harm based on the "essential facilities" doctrine.
     
  • Shaping regulation
    E.CA has analysed and issued a report on the merits of sector-specific block exemptions in the automotive industry, which provides safe harbour for certain vertical contracts. We have also provided comprehensive reports on the need to regulate the Internet and have participated in the EC consultation on the Guidelines on State Aid for the development of broadband.