About
About the course
This course is designed to assist non-economists involved in competition matters relating to the Commerce Act and who require an understanding of the economic frameworks applied in investigating anti-competitive behaviour. The one-day master class will combine tutorial sessions and real case studies in an interactive learning environment.
Key Learning ObjectivesWhether you are directly involved in a competition matter or wish to raise a matter, this course explains in simple language how competition problems are analysed by competition authorities around the world. The course will allow you to better present your arguments with the relevant information.
|
Who Should Attend?Lawyers, businesses, accountants and government agencies including regional and local councils and District Health Boards are frequently involved in competitive tendering processes, mergers and acquisitions, exclusive contracts, refusal to supply issues, and/or complaints on anti-competitive behaviour, all of which require dealings with the Commerce Commission. |
Outline
Part 1: Key economic concepts - what are they, how are they used in analysing market power, and what information is required?
Defining the relevant economic market
To assess whether a firm has market power you need to analyse which product(s) or service(s) it could control, either by raising prices and/or reducing quality.
- Learn how to draw boundaries around products, customers, geography and the supply chain involved in delivering the products and services in question
Assessing existing competition from competitors in the relevant market
Competitors may compete on price, quality of service and/or product innovation. They may even compete at different time periods like in a tender for a long term contract.
- Understand the different ways in which firms compete
- Learn how to assess the degree of competition between firms in a market
- Learn how to measure market shares
- Understand how easy or difficult it is for competing firms to expand
Assessing potential competition from entrants into the relevant market
There are a number of different types of barriers to entry a potential entrant could face. These could range from access to key inputs, intellectual property rights, strict regulations or even fear of ‘competing with a big player’.
- Understand the different types of barriers to entry
- Learn how to assess whether barriers to entry are significant
- Understand when potential entry is likely in a market
- Learn how to assess whether potential entry would be timely enough to provide a competitive threat
- Learn how to assess whether the extent of potential entry would be sufficient in scale
Assessing the buyer power of customers in the relevant market
Customers that have a strong bargaining position can put pressure on firms to keep their prices down and/or to improve their service.
- Learn how to assess whether a customer is large and sophisticated enough to be able to negotiate competitive terms and conditions with its supplier.
Part 2: Competition assessments of mergers and acquisitions
Different types of mergers
- Learn how to analyse vertical mergers (mergers involving firms in different parts of the supply chain, for instance, a manufacturing firm merging with a wholesaler)
- Learn how to analyse horizontal mergers (mergers between firms producing the same or similar products and services)
Conducting merger analysis: A case study
In this real life case study, participants will understand how all the key concepts introduced earlier have been applied in order to assess whether a merger reduces competition in market substantially.
Analysing divestments
Where a potential merger raises competition concerns, the merging firm can decide to sell certain parts of the business to a third party, as an attempt to restore any competition that may be lost post-merger.
- Understand when divestments are required
- Learn about the risks involved and what makes a ’’good’ divestment from the point of view of a competition authority
Part 3: Anti-competitive behaviour-what is it and how economics can be used to assess any potential harm?
Pricing strategies to drive competitors out of the market
A firm may charge prices below its costs to deliberately restrict, or prevent a competitor from entering.
- Learn to distinguish between what could be a short term discount promotion and what could be a long term strategy to maintain market power
Tying-in products and services
Tying-in is when the purchase of one good is conditional upon the purchase of another. This behaviour could make it difficult for competitors to compete as they would need to sell both products.
- Understand the pros and cons from tying-in products and services
Bundling products and services
Bundling is when several products are available as a bundle, or when a discount is offered to a customer that purchases a bundle. Firms that engage in bundling products may create efficiencies that benefit the consumer. On the other hand, they could harm consumers by raising prices and/or reducing choice.
- Understand the benefits and possible harm caused by bundling products and services
Exclusive contracts between manufacturers, wholesalers and retailers
There are different types of contracts which can produce benefits to firms and consumers and/or have a competition dampening effect harming other firms/consumers.
- Learn how to assess the benefits and the anti-competitive effects of exclusive contracts
Understanding different types of collusive behaviour
There are two types of collusive behaviour, one which is formal and easy to detect like price fixing, and the other which is informal like
co-ordinated behaviour which is harder to detect.
- Understand the two types of collusive behaviour along with their potential anti-competitive effects
Facilitator
Nimisha Tailor
Nimisha has significant experience of working in competition policy and has worked at the competition authorities in the UK and in New Zealand. As well as having consulting experience, Nimisha spent over three years at the New Zealand Commerce Commission, where she gained knowledge of several industries including ports, banks and the industrial, agricultural and pharmaceutical sectors.
Before moving to New Zealand, Nimisha was a member of the Government Economic Service in the United Kingdom (UK) for five years. She worked at the Office of Fair Trading in the UK providing economic advice on UK and European mergers as well as complaints in relation to media and sport. Nimisha also advised on radio spectrum matters at the UK Radiocommunications Agency, prior to it becoming part of Ofcom.
Her training experience includes:
• Designing and delivering economics training course to radio engineers on the costs and benefits of starting up a spectrum trading market
• Reviewing and editing a competition economics workbook for the Commerce Commission
• Providing training on merger analysis to government agencies in the UK
• Presenting training modules for the Commerce Commission
• Providing on the job-coaching and mentoring for new and junior staff in the mergers branch at the Commerce Commission
Nimisha has a MSc degree in Economics from the London School of Economics and Political Science. She also has a BSc (Hons) degree in Economics from University College London.
In-house Training
Sorry, this event currently has no dates scheduled.
