Understanding the economics behind competitive markets is at the heart of competition policy. Competition authorities are increasingly relying on economic analysis in their procedures and investigations. More than that, private damages claims are becoming the standard and state aid has gained on importance especially after the economic crisis of 2008.
We offer assistance to the full range of competition services, including benchmarks for state aid cases, quantitative and qualitative research to define the relevant market, and calculation models to estimate private damages. Our team is experienced with building economic models to support your arguments in the most accessible way. We have strong economic as well as legal knowledge, ensuring awareness what kind of evidence is suitable for your purpose.
Embridge uses a wide range of public databases for its economic analysis. Besides subscription based databases, we also use publically available sources where needed. In addition, Embridge generates new datasets based on privately collected data. Through our experience, data availability and creative mind-set, we are able to offer a wide range of standard and non-standard solutions.
- Cartel agreements and dominant firms
- State aid
- Private damages
Embridge provides economic insight during all phases of a merger proceeding. We offer economic feedback during the pre-notification phase, as part of the notification itself or during the investigation phase(s). We provide intuitive economic analysis to law firms, private companies and government agencies including:
- SSNIP test to determine the relevant market;
- Critical loss analysis to test the effect of a price increase on profitability;
- Efficiency effects arising from a merger;
- The closeness of competition analysis; and
- (Evaluation of) Merger simulation models.
Embridge frequently works together with market research companies to obtain market data through questionnaires and market investigations to support the economic analysis.
Cartel agreements and dominant firms
Embridge provides robust economic analysis in screening for (potential) competition concerns either for regulatory purposes or legal proceedings. Embridge has broad experience in economic modelling and has access to various databases to support the analysis. We provide a clear and custom-tailored approach to our clients for all competition matters. Our services include:
- The hypothetical monopolist test;
- The Herfindahl-Hirschman Index (HHI) to measure market concentration;
- Modelling of counterfactual prices;
- Assessment of the competitive dynamics of a market; and
- Assessment of efficiency effects.
Our pragmatic approach enables us to achieve in-depth results that align with the requirements of the case at hand.
Embridge provides assistance in determining to which extent state aid can be supported from an economic perspective. We are able to conduct a broad range of economic reasoning to demonstrate the compatibility of aid measures with the state aid rules and regulations. Embridge provides sound economic analysis to law firms, private companies and government agencies including:
- Analysis to support alignment with the market economy operator principle (MEOP);
- Analysis to support compliance with the conditions of services of general economic interest (SGEI);
- Economic analysis in the ex-post evaluations of aid measures; and
- Compliance of tax arrangements with state aid rules.
Embridge has broad experience in performing economic studies. Through economic analysis we are able to assess whether government funding is granted at market conditions.
Embridge provides damage calculations to plaintiffs and defendants during all phases of private litigation. We have in-depth experience in regression analysis and other econometric techniques to establish the causal link between the infringement and the damage suffered. Embridge provides sound economic analysis to law firms and private companies related to damage calculations. Our services include:
- The pre- and post-approach to estimate overcharges by comparing pre- and post-prices;
- The cost-based approach to calculate the overcharges through comparing marginal unit cost plus a ‘reasonable’ mark-up with actual prices.
- Econometric models to simulate pricing based on economic theory of oligopolistic behaviour; and
- Econometric models performing price prediction regressions.
Solid economic evidence has proven to be essential in court. Embridge presents its findings in a clear and precise manner, suitable in complex damage trials.