Market Power Misdiagnosed
This bulletin from Frontier Economics examines the claims of market gouging by generators in the National Electricity Market following the closure of Hazelwood Power Station.
Writing down the NBN
This bulletin from Frontier Economics looks at the issue of an NBN write-down of assets and explores the links between pricing, write-downs and value.
Valuing the real impacts of rail
This bulletin from Frontier Economics looks at valuing the real impacts of rail and making a compelling business case for investing in this infrastructure.
Quantitative analysis – quality assured?
This bulletin from Frontier Economics looks at econometrics and discusses some examples of when econometric modelling goes awry.
Ride sharing and public transportation – the next big disruption
As the public increasingly embraces ride sharing, the discussion has extended from the implications for the taxi industry to the potential for it to also disrupt public transport. This bulletin [...]
Easy Target
We project that Australia will comfortably meet its 2030 28% emissions target for the electricity sector due to existing and announced policies supporting energy efficiency, renewables and [...]
Is that a fact?
A recent decision by The Australian Competition Tribunal brings into sharp focus a difference between economists and the courts in their approach to facts. The decision is Application by Sea [...]
Value capture: bypassing the infrastructure impasse?
Australia needs at least $300 billion, and up to $700 billion, spent on infrastructure over the short to medium term if it is to maintain and improve its productivity and liveability [1].
Fixing Competition Policy?
Earlier this year, a joint media release by the Australian Treasurer (Scott Morrison), Prime Minister (Malcolm Turnbull) and the Minister for Small Business (Kelly O’Dwyer) was headed “Fixing [...]
Once Bitten Twice Shy
A recent judgment by the Australian Competition Tribunal leaves it open to the Australian Energy Regulator (AER) to consider whether it would be in the long-term interests of consumers of [...]
Unappealing Prospects
The Australian Competition Tribunal’s recent judgment found in favour of the businesses that sought merits review of the Australian Energy Regulator’s revenue determinations, on most of the [...]
Levelling Up
In an earlier bulletin, Uber Regulated? we examined the case for regulating so-called “sharing economy” services, like Uber and Airbnb. In this companion piece, we discuss why it is important to [...]
Expecting The Unexpected: The Challenges Of Traffic Forecasting
Inaccurate traffic forecasts are not a recent phenomenon. However, these inaccuracies are increasingly being exposed as a result of the greater involvement of the private sector in road development.
Uber Regulated?
How We Should Regulate ‘Smartphone’ Taxi Apps. The emergence of smartphone-based apps to order and pay for taxis could revolutionise how these markets work – and reduce the need for onerous regulation.
Thinking outside the box: calculating damages
Explicit agreements among competitors that fix prices are illegal – and for good reason. If the collusion is successful, prices will be higher and output lower. But cartels are not always very [...]
Against the odds?
As excitement over the 2014 World Cup finals in Brazil mounts, Frontier’s economists have been getting into the party spirit in the way that only economists can: by collecting data.
Pray For Rain: ACCC’s Loss Capitalisation Model
A fundamental objective of economic regulation is to ensure a regulated firm has a reasonable opportunity to recover its efficiently-incurred costs. Without this opportunity, such a firm will no [...]
Naughty Or Nice – Frontier Christmas Bulletin 2013
Christmas is a time for family, food and – of course – presents. But rumour has it that the best presents only go to the “nice” kids, with “naughty” ones finding nothing more than a lump of coal [...]
Strangely Irresistable
Most people have bought products on an impulse that they did not need – the new gadgets in the kitchen cupboards, the exercise equipment in the garage or the unworn clothes in the wardrobe. Often [...]
The Invisible Handout – Frontier Christmas Bulletin 2012
Every Christmas, children receive free goods via a supply chain that winds through their chimney and ends up under a tree. It seems simple and efficient: few customers question the quality of [...]
Measure for measure
Do estimates of virtual water and food miles really help consumers to make environmentally friendly choices?
Starting Over
The rise of the internet has drastically reduced the costs of media production and paved the way for the entry of new firms into a traditionally highly concentrated industry.
Constructive Criticism
Making negotiations between airports and airlines work. Australia, New Zealand and the UK have adopted different approaches to regulating airports. However, all place some reliance on direct [...]
Present Values
It’s easier to think of economists as the prophets of trading doom than as Santa’s little helpers – too busy telling everybody what’s happening to productivity, energy demand and like-for-like [...]
Where Convergence Exposes Divergence
Communications, media and entertainment services are converging fast, with the digitisation of content and the emergence of new delivery platforms transforming consumer choices and shifting [...]
Green is good, but at what cost?
On Monday 28 February 2011, the Climate Institute, an Australian interest group, released a study that claims that a 25% reduction on 2000 level greenhouse gas emissions by 2020 would be positive [...]
What’s The Cost Of Carbon Uncertainty?
Some studies and commentary have recently raised the issue of carbon certainty for the electricity sector. The uncertainty regarding whether a carbon price will be introduced in Australia means [...]
Keep ’Em Un-Coordinated
The ACCC has been placing increased emphasis on the possibility of ‘coordinated effects’ as a reason for deciding to oppose mergers between firms. While concerns about mergers resulting in [...]
Third Time Lucky
The Minister for Communications and Technology in New Zealand has finally accepted a recommendation from the New Zealand Commerce Commission (NZCC) to regulate mobile termination rates (MTRs). [...]
The Times, They’re A Changin’
Adaptation in climate policy is about reducing the harm, or seizing the opportunities, caused by climate change. Unlike mitigation, which focuses on the reduction of greenhouse emissions, [...]
Not Patently Obvious
Many holders of patents (and some intellectual property lawyers) do not realise that the exercise of patent rights is constrained by the provisions of the Australian Trade Practices Act 1974.
Pricing It So They Shall Come
The Australian Government has commenced the roll-out of a national wholesale-only high-speed broadband access network, and is considering the regulatory arrangements that should apply to this network.