EMEA THE ANALYSIS
Economic analysis can clarify even the most intractable issues, to inform better decisions. Here we bring the best that economics has to offer without bias: setting out what is and isn’t known, and what needs to be considered when there is no consensus.
FROM THE EDITOR
I’m pleased to launch our Quarterly publication: THE ANALYSIS.
Leaders and their advisors face high-stakes decisions and must respond quickly – even when the consequences are highly uncertain and distorted by overlapping issues, divergent perspectives, and seemingly conflicting facts.
In The Analysis, we will consider the complex challenges that businesses and policymakers face across the various sectors we work in, and demonstrate the light that economic analysis and empirical approaches can shed on them – albeit partially – to inform better decisions and advance important debates.
IN THIS ISSUE
Market definition in principle and practice
How should market definition be applied in competition decisions? In light of the European Commission’s ongoing review of its Market Definition Notice and similar developments in the US and UK, Joe Perkins sets out how the process is meant to work, how it actually works, and the lessons we can learn from understanding the gap between the two.
In the recent dispute between Spotify and Apple, Random Control Tests provided competition authorities with compelling evidence of alleged misconduct. John Davies, Peter Bönisch, and Rashid Muhamedrahimov explain the advantages of this approach and the circumstances in which it can suitably be applied in competition cases.
The privacy paradox: how much do social network users value their data?
There is an apparent tension between how much individuals say they value privacy and how freely they provide their personal data to online services and platforms. This so-called privacy paradox has bothered policy makers for years, often justifying inaction. Patricia Lorenzo and Alejandro Requejo describe why it exists, how it can be solved, and how much consumers really value their data.
Competitive Effects of Price Parity Agreements
Competition authorities have been hostile towards price parity agreements. However, not all agreements are alike. Wholesale price parity agreements, like those observed in the airline ticket industry, can intensify competition to the benefit of consumers. Salvatore Piccolo and Kadambari Prasad set out the different types of parity agreement and explain the factors that determine their impact on consumers.
What is 5G and what changes will it bring?
Despite offering large potential benefits, deploying viable 5G networks will be challenging. Paul Reynolds considers the competitive implications for network operators and how policy might be refined to ensure that consumers realize the potential benefits. He explains the risks of adopting merger control and spectrum policies that may fail to deliver given: (a) the massive investments needed to make 5G a reality; and (b) the significant uncertainty about consumers’ willingness to pay for the incremental services that 5G will eventually deliver.