Studies for governmental or international institutions on competition policy related issues

While case related work is driven by time constraints R&D (like studies or reports) allows for a more careful reflection on the design of competition instruments. Economics analysis can contribute in particular in two ways to steer competition policy in the right direction: ex post and ex ante analysis. Ex post analysis is undertaken in order to understand how antitrust, state aid, and merger decisions have effected markets. The main difficulty in this line of research is to establish the relevant counterfactual, i.e. what would have happened if some relevant alternate decision had been taken instead. Industry and market knowledge is crucial at this point in order to understand the precise factors involved.

The second area where economics is important is ex ante analysis, such as in market monitoring or impact assessment. Market monitoring is the analysis of whether or not markets function well, in principle prior to possible antitrust action. Impact assessment evaluates the cost and benefits of a regulatory intervention.

ESMT Competition Analysis provides a sound understanding of the underlying economics, helping to frame the assessment appropriately. More importantly ESMT Competition Analysis also understands the administrative environment for which the economic analysis has to become decisive.