In many markets, there is a common phenomenon that, for a given change in costs, prices tend to rise more quickly when costs increase than they fall when costs decrease. As evident in some recent price rises in the UK energy market, this “rockets and feathers” pricing pattern is often claimed as evidence of collusion and followed by calls for greater regulation. However, there are other more competitive explanations and so care is needed when considering a potential remedy.
Companies & Regulation
Competitive pressure is changing the landscape of air travel and traditional national airlines need to adapt to the new environment. The situation is particularly complex and uncertain in Europe due…
Robots will significantly alter the working life over the coming decades and will take over many tasks which are currently performed by humans, for example in care and nursing, in…
Kevin Dowd is professor of finance and economics at Durham University. Kevin has written extensively on the history and theory of free banking, central banking, financial regulation, and monetary systems.…
Greece’s government debt keeps Europe busy for almost 7 years now. The government debt ratio adds up to almost 180% of the GDP. According to Transparency International, Greece is ranked…
Online Articles
Public transportation in Italy, Uber and the need for liberalisation and competition
by
IREF
In February 2017, the Italian government defused a heated confrontation with the representatives of licensed taxi drivers. They were asking for protection against forms of allegedly unfair competition, such as…
Governments around the globe are trying to limit the use of cash by their citizens. Most European countries already implemented upper limits for the amount of cash that can be…
WP 2017-01. Since the financial crisis, government debt ratios have increased in many countries. Most studies indicate that there is a negative association between high medium- and long-term debt ratios…
Has the European Court of Justice interrupted a honeymoon between Gazprom and the EU? The energy giant Gazprom has been investigated by the EU Commission over an alleged abuse of…
The creation of a European Digital Single Market is moving forward, but the risk of regulatory capture is significant and it is undermining the success of the project. The reduction…