Regulatory economics

London Economics has been a trusted provider of analysis, advice, and evidence to companies, regulators and governments since the early days of economic incentive regulation.

London Economics’ experienced economic consultants produce client-driven studies using cutting-edge analytic tools across a wide range of regulation questions and industries with experience across Europe, the Middle East, Asia, Australia and the Americas. Working closely with other London Economics teams to provide a high level of expertise in newer issues and methods for regulatory economics, our economic consultants provide robust evidence-based analysis across the full range of regulatory issues, such as:

  • competition in regulated industries, from unbundling and privatisation to ongoing regulatory reviews and market inquiries;
  • regulatory pricing arrangements and price controls, including the impacts of regulatory policies on firm behaviour and the consequences of various pricing strategies;
  • consumer behaviour in regulated industries and network markets, including the effect of behavioural biases in regulated markets;
  • the interaction between regulation and service quality, and consumer and firmwillingness to pay to avoid risks and/or change service quality;
  • Universal Service Obligations;
  • benchmarking and cost efficiency;
  • demand forecasting;
  • investment appraisal, impact assessments, and policy evaluation;
  • retail, wholesale and network price structures and network access;
  • regulatory due diligence.

Our regulatory economics expertise extends across all the major regulated utilities, sectors and industries, with particular expertise in energy, water, air transport, telecommunication and postal services markets. We frequently work with international engineering consultants to provide our clients with integrated solutions that combine cutting-edge technical and economics expertise.