Archive for 2017
This briefing note, written by our Managing Consultant, Iona McCall, and Analyst, Elena Ashtari Tafti, takes a preliminary look at the potential theories of harm created by the Tesco/Booker merger following the opening of the first phase of the investigation by the Competition and Markets Authority.
This briefing note gives an insight into the key issues surrounding price comparison websites in the context of the Competition and Markets Authority study of digital comparison tools. Just how beneficial are they to consumers?
This note provides a simple description of short-selling practices together with an illustration of the potential benefits it can bring to investors.
A look into the emergence of Big Data, its fundamental importance to businesses and the wider economy, and the critical role of competition authorities in ensuring Big Data is not exploited.
The Department for Business, Energy & Industrial Strategy (BEIS) has published a new Europe Economics report on dynamic competition in online platform markets. This sets out the economic theory of online platforms and how competition works in that sector and reviews data on a range of such platforms: search engines (e.g. Google), short-term accommodation (e.g. Airbnb), music (e.g. Spotify), car insurance price comparison websites (e.g. GoCompare) and social networks (e.g. Facebook).
Europe Economics was commissioned to conduct a cost-benefit analysis on the Technical Standards drafted by ESMA with respect to the implementation of the Benchmarks Regulation. The Benchmarks Regulation extends consistent EU-level regulation to the development of benchmarks. This is in the wake of the LIBOR and related scandals. In the study we considered both the direct compliance costs to market participants, in both qualitative and, where possible, quantitative terms, as well as undertook a qualitative analysis of the potential benefits and other indirect costs. Our project also broke new ground in describing and scaling the market landscape for benchmarks in Europe.
Price comparison websites allow consumers to buy after filtering and comparing products and services provided by different suppliers. Their development was seen as an opportunity to reduce price disparity and advance towards price conversion, but this has not always happened. This note describes how price convergence and differentiation strategies have been observed in the airline industry.
The European Financial Reporting Advisory Group commissioned Europe Economics to conduct an ex ante impact assessment on the potential impact of IFRS 16 Leases. We analysed the potential impact on the behaviour of lessee companies listed on European Regulated Markets, investors, the leasing industry and other affected stakeholders, and also estimated costs and benefits of IFRS 16. Our work was led by Ross Dawkins. EFRAG's Draft Endorsement Advice references our study, with further details of EFRAG’s ongoing work here
Faced with a profound growth in the market for cyber risk insurance over the recent years, concerns have arisen regarding the industry’s ability to absorb cyber risk. In this respect, a possible solution that has been proposed is the formation of a cyber liability insurance pool. Accordingly, this briefing paper presents the concept of a cyber risk pool, illustrates its inherent advantages and disadvantages, and discusses the potential implications of a withdrawal of the Insurance Block Exemption Regulation which currently exempts certain types of insurance pools from the application of competition rules.