NEWS

“Welfare Analysis of Regulating Mobile Termination Rates in the UK“ by David Harbord and Steffen Hoernig. Published in The Journal of Industrial Economics, 63: 673–703, 31 December 2015.

Abstract: We develop a calibrated simulation model of the UK mobile telephony market and use it to analyze the e¤ects of reducing mobile termination rates (MTRs) as recommended by the European Commission. We fi…nd that reducing MTRs is likely to increase both consumer surplus and networks’’ profi…ts. Depending on the strength of call externalities (i.e. benefi…ts to the recipient of a call), social welfare may increase by as much as £ 1 billion to £ 4.6 billion per year. We also use the model to estimate the welfare effects of the 2010 merger between Orange and T-Mobile and …find that the merger led to a substantial reduction in consumer surplus.

Visit Journal of Industrial Economics articles website

“What’s in a Game?“ by David Harbord, 17 March 2015.  A short comment on applying game theory to the Greek debt restructuring negotiations, published in openDemocracy.

“The Law and Economics of Vertical Restraints: An Overview“  by Nils-Henrik von der Fehr and David Harbord, 10 November 2014.

Summary: This article provides a brief overview of vertical restraints. discusses the treatment of vertical distribution arrangements in US and European competition law, and selectively surveys and explains the modern economics literature on exclusive dealing arrangements.

“Subastas de capacidad eléctrica en el Reino Unido: Lecciones en Colombia y Nueva Inglaterra“ por David Harbord and Marco Pagnozzi, REVISTA ANDESCO N° 28, Junio de 2014.

Abstract:  Aún no hay un acuerdo entre los economistas sobre la necesidad de los mercados de capacidad en la generación de electricidad. Sin embargo, cuando se introducen nuevos mercados de capacidad es importante que estén bien diseñados y que tengan en cuenta la experiencia existente y las fallas en diseños anteriores.  La experiencia tanto en Colombia como en Nueva  Inglaterra provee una advertencia fuerte sobre los peligros de poner las subastas de reloj descendente como elemento central en el diseño de los mercados de capacidad eléctricos. Entre las alternativas de diseño, una subasta de sobre sellada parece ser una mejor opción.

“Britain’s Electricity Capacity Auctions: Lessons from Colombia and New England“ by David Harbord and Marco Pagnozzi, The Electricity Journal, June 2014, Vol. 27, Issue 5.

The article discusses the new British electricity capacity auction in light of recent experience in Colombia and New England, and argues that the proposed descending clock auction design will result in high prices and inefficient allocations due to the exercise of market power. Some alternative auction design options are considered, and a sealed-bid auction is recommended as a better choice.

A recent interview with David Harbord “Can renewable energy kick-start Colombian ecotourism?“, published by Business News Americas on 31 January 2014, discusses the creation of a nonprofit foundation Ferdescol (Fundacion de Energias Renovables y Desarrollo Sostenible en Comunidades Colombianas) by Market Analysis Ltd. in collaboration with Baker & McKenzie S.A.S.  Its purpose is to promote renewable energy and sustainable development projects in remote Colombian communities.  Our initial aims are to provide solar panels and a water desalinization plant to a small community of 15-20 indigenous Wayuu families living near Rio Hacha in Colombia’s northern Guajira department. An article – “Renewables to spawn Colombia ecotourism” – accompanying the interview appeared on the BN Americas website on 30 January 2014 and is available here.  A Spanish language version of the interview “Podra la energia renovable hacer despegar el ecoturismo en Colombia?“ can be downloaded by clicking on the link.

We are in the initial stages of setting up the Ferdescol foundation and seeking funding from government and international agencies, and from energy companies in Colombia.  Baker & McKenzie S.A.S. is providing pro bono legal services. For more information visit our website www.ferdescol.org or contact David Harbord or Lucia Martínez.

An interview with David Harbord “Is Colombia stunting renewable energy growth?“ was published in Business News Americas on 17 January 2014.  The interview discusses the results of our report “Private Investment in Wind Power in Colombia“ published in July 2012. An article – “Wind can tame Colombia’s El Nino power scourge, says analyst” – accompanying the interview appeared on the BN Americas website on 16 January 2014 and is available here. A Spanish language version of the interview “Colombia esta frenando el crecimiento de las energias renovables?“ can be downloaded by clicking on the link.

A new paper “Efectos de la Reduccion de Tarifas de Terminacion Movil en el Bienestar en el Mercado de las Telecomunicaciones de Mexico“ by David Harbord and Steffen Hoernig was published in El Trimestre Economico, Vol. LXXX (3) julio-septiembre de 2013, pp. 651-686. The paper reports our estimates of the potential welfare gains from reducing mobile termination rates in Mexico, and finds these to be significant.

A report by David Harbord and Marco Pagnozzi for the Colombian Commission for the Regulation of Energy and Gas “Second Review of Firm Energy Auctions in Colombia” was published on 18 December 2012.  The report contains our analysis of Colombia’s second firm energy,  or electricity generation capacity, auctions held in December 2011 and January 2012, and recommendations for improving the performance of future auctions.

An earlier report by the same authors “Review of Colombian Auctions for Firm Energy” analyzed Colombia’s first firm energy auctions held in May 2008.