Consumer behavioural biases imply that consumers may not behave in the fully rational way that many economic models assume. This study assesses what impact behavioural biases can have on competition, including, how competition and pricing practices may change when consumers are biased; if lowering barriers to entry can reduce inefficiencies that arise from consumer behavioural […]
The Danish Competition and Consumer Authority (DCCA) has published two reports analysing the interactions between consumer behaviour and competition in retail markets; one of which was written by London Economics. The study undertaken by London Economics analyses consumer behaviour during the purchasing processes and is based on a survey of 6,000 Danish consumers. The study […]
The OFT has published the market study on problems consumers have with contracts. To inform the market study London Economics in association with YouGov completed a behavioural survey of consumers combined with an economic experiment to investigate the features of contracts that cause most problems for consumers.
|Subsector:||Competition, Regulation and Business|
This study analyses the nature and impact of hardcore cartels and other economic crimes based on a review of relevant academic literature. The study was commissioned by the Danish Competition and Consumer Authority and its findings feed into work being undertaken by a committee set up by the Danish Government with a mandate to assess […]
European Commission conference on Behavioural Economics, November 22, 2010.
|Subsector:||Telecom and media|
This study completed for Ofcom reports the results of an economic experiment that investigates different features of switching processes for consumers in the market for communication services. The economic experiment tests the impact of two main forms of switching process, Gaining Provider Led Processes (GPLPs) and Losing Provider Led Processes (LPLPs) on a set of […]
London Economics was comissioned by the Office of Fair Trading to undertake a behavioural economics study into how different price frames may impact upon consumer behaviour. The study uses experimental economics to test if consumers incur behavioural biases under five common pricing practices used by firms, including drip pricing and “3 for 2” offers. The […]
|Subsector:||Remedies and enforcement|
London Economics was commissioned to conduct an evaluation of the impact of the OFT competition advocacy interventions. A survey of government officials illustrates that competition advocacy is valued by those receiving the advice, often resulting in changes to delivery and, in cases, to the very objectives of the policy. The report also explores, with the […]
Ofcom has published the report “Using experiments in consumer research” by London Economics. The work informs Ofcom about how behavioural and experimental economics can assist regulators in understanding consumer behaviour. The research implemented a controlled economic experiment which considered a number of options for improving the understanding of consumers when choosing telecommunication services funded through […]