Effective economic advice almost invariably requires economic arguments to be supported by empirical evidence. RBB personnel have considerable expertise and experience in the practical application of quantitative techniques in various competition law contexts. We are able to judge which empirical technique or techniques best meet the requirements of each particular case. We have employed quantitative techniques in submissions made to the EC Commission and to national competition authorities throughout Europe. In addition, RBB personnel have provided expert Court testimony on the application of econometrics.

Virtually all our work involves some empirical element. RBB economists have undertaken more advanced empirical analysis for clients including General Electric, the FA Premier League, Philips and Shell.

The type of quantitative techniques that RBB personnel have employed include the following:

	Econometric Analysis
	Econometric analysis is frequently undertaken to estimate the price elasticity of demand in the context of assessing market definition, but it can also be used in many other settings where there is a requirement to produce a systematic estimate of an economic relationship. Econometric analysis consists of a set of tools employing statistical methods which are used to evaluate real world competitive relationships. These same statistical methods permit such models to be tested, both in terms of the magnitude of the relationship and also how closely such models correspond to reality (ie to test whether the model is a “good” one or a “bad” one). By allowing the impact of all relevant factors to be taken into account at the same time, econometric analysis offers a very useful empirical method for assessing the nature of competition in an industry.
	Critical Loss Analysis
	Critical loss analysis can be used to assess the appropriate definition of the relevant market by estimating the magnitude of sales that would to be lost in response to a relevant price increase. Using information on a firm’s margins and an estimate of the magnitude of lost sales, critical loss analysis can be used to implement directly the hypothetical monopolist test.
	Price Correlation Analysis
	Price correlation analysis has been routinely employed by competition authorities in Europe both to assess the definition of the relevant product market and the definition of the relevant geographic market. However, the results of price correlation analysis require careful interpretation which must take place in the context of the overall competitive assessment.
	Bidding Studies
	In some industries, competition takes the form of firms bidding for tenders. In such industries, the assessment of competition often needs to go beyond market share analysis and rather focus on the credibility of each firm in competing for tenders. Bidding studies can also be used to assess the closeness of competition between merging parties by assessing the ranking of firms in each of the observed bids.
	Price/Concentration Analysis
	Price-concentration studies assess the relationship between price and concentration across a number of countries or regions. Such studies can be used to assess whether high concentration is indicative of significant market power. Typically, such analysis would need to take into account other factors in assessing the relationship between price and market concentration.
	Merger Simulation Modelling
	Merger simulation modelling employs econometric techniques to estimate the likely impact of a merger on price. Such techniques also require some assumptions to be made about how firms compete with one another. In assessing the usefulness of simulation models it is therefore critically important that the underlying assumptions regarding the competitive interactions between firms adequately reflect observed behaviour in the industry under consideration.