Inspiring better decisions through economics and finance
Simple tests based on firms producing a single product have become increasingly popular among competition authorities looking to assess the effect of mergers on prices. In reality, however, firms often produce several related products. Does this introduce any potential biases to these tests? If so, what can be done to mitigate them?
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Recent years have seen renewed debate around vertical merger control. Authorities have been changing their guidance and competition headlines have been dominated by vertical mergers such as AT&T/Time Warner, Facebook/Giphy and Illumina/Grail. But exactly how has our collective economic understanding of vertical mergers evolved? And what role can economics play in competition policy practice? In May 2022, the Oxera Economics Council met to discuss these questions. Read More
The growth of online sales has prompted debate around whether an online sales tax (OST) should be introduced to ‘rebalance’ the taxation of the retail sector. Indeed, the evolution of retailing in the UK has implications for several key government policy areas. We revisit the topic, which we explored in a 2020 Agenda article, in light of the recent launch of an HM Treasury consultation on the introduction of an OST. Read More