Research team

Economics

The economics of balancing mechanisms in electricity markets. 01/10/2016 - 30/09/2018

Abstract

This project studies the economics of balancing mechanisms in electricity markets. Besides a technical goal, namely balancing injections and offtakes in real time, the design of these mechanisms has important economic consequences. In the CWE market context where intermittent production technologies are rapidly integrated, it crucially affects investment and production decisions. The well-functioning of the balancing market is essential to ensure system stability and to prevent blackouts. Countries will benefit from more economic insights when they decide to coordinate their policies at this stage.

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Research team(s)

The economics of balancing mechanisms in electricity markets. 01/10/2014 - 30/09/2016

Abstract

This project studies the economics of balancing mechanisms in electricity markets. Besides a technical goal, namely balancing injections and offtakes in real time, the design of these mechanisms has important economic consequences. In the CWE market context where intermittent production technologies are rapidly integrated, it crucially affects investment and production decisions. The well-functioning of the balancing market is essential to ensure system stability and to prevent blackouts. Countries will benefit from more economic insights when they decide to coordinate their policies at this stage.

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Research team(s)

Electricity production with intermittent technologies. 01/02/2013 - 31/12/2013

Abstract

The purpose of this project is twofold. First, we study the relation between production capacities for intermittent and flexible energy sources under different market structures. Second, we analyze the efficiency implications of various government policies for the functioning of the energy market.

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The Marketplace of ideas: Less owners, less ideas? An interdisciplinary study on the impact of media ownership concentration on media content, outlet and production diversity using a longitudinal and cross-national perspective. 01/01/2013 - 31/12/2016

Abstract

Combining insights from communication studies, political science and economics, the project aims to understand the characteristics of the current media concentration (and resulting media conglomerates) and its impact on content diversity in historical and cross-country comparative perspective to answer the question if concentration of media ownership limits the plurality of issues, actors, viewpoints and discourses in the media, undermining their democratic role.

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Applications of competition policy in the sports industry. 01/10/2012 - 30/09/2014

Abstract

The professional sports industry in Europe and the USA conducts several practices which appear to be textbook cases of anti-competitive behavior. Famous examples include sharing gate revenues, geographically splitting up markets and collective sales of TV rights, advertising and merchandise. Still, in many instances antitrust authorities have neglected to outlaw these practices. This research project bundles four contributions that look into some major competition policy issues in the sports industry. First, it examines how a league may use revenue sharing as a device to coordinate talent investments when sports fans are diversified. Second, the project evaluates how the choice of different contest success functions influences the results of previous contributions in the literature. In a third contribution it introduces a model of platform competition among clubs to investigate the effects of jointly selling advertising on sports consumers and advertisers. A final empirical contribution looks into the importance of factors that may impact on the distribution of playing strengths between teams in a league. This has great relevance to antitrust policy, as it is a crucial issue in the discussion around allowing collective sales of TV rights in Europe.

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Implications of real options analysis for industrial organization and competition policy. 01/01/2012 - 31/12/2015

Abstract

Until now, policy recommendations and decisions have been based on the Net Present Value (NPV) rule. However, the NPV rule disregards the lost value of flexibility when making decisions with irreversible consequences. Real options theory naturally incorporates these elements. Policy recommendations based on real options theory will, therefore, improve NPV-based policy recommendations. The real options approach will, as a result, have consequences for policymakers' decisions, firms' interests, and consumer welfare. In this project, we will take a real-options approach with respect to the clearing or blocking of mergers, state aid, licensed entry fees, and regulation of vertically integrated firms.

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Applications of competition policy to the sports industry. 01/10/2010 - 30/09/2012

Abstract

The professional sports industry in Europe and the USA conducts several practices which appear to be textbook cases of anti-competitive behavior. Famous examples include sharing gate revenues, geographically splitting up markets and collective sales of TV rights, advertising and merchandise. Still, in many instances antitrust authorities have neglected to outlaw these practices. This research project bundles four contributions that look into some major competition policy issues in the sports industry. First, it examines how a league may use revenue sharing as a device to coordinate talent investments when sports fans are diversified. Second, the project evaluates how the choice of different contest success functions influences the results of previous contributions in the literature. In a third contribution it introduces a model of platform competition among clubs to investigate the effects of jointly selling advertising on sports consumers and advertisers. A final empirical contribution looks into the importance of factors that may impact on the distribution of playing strengths between teams in a league. This has great relevance to antitrust policy, as it is a crucial issue in the discussion around allowing collective sales of TV rights in Europe.

Researcher(s)

Research team(s)

Regulation and competition policy. Decision making in merger control: the role of communication. 01/10/2007 - 04/05/2008

Abstract

This research project offers an economic analysis of decision processes regarding mergers. The role of communication between competition authorities and firms is a central part of the study. The following themes will be investigated: 1) the role of communication and information exchange between firms and authorities; 2) the effect of communication on the choice of the welfare standard; 3) the effect of third parties on communication and descision processes.

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Research team(s)

Higher Education and Research: Organization, Market Interaction and Overall Impact in the Knowledge-Based Era. 01/01/2007 - 31/12/2011

Abstract

We continue our current work on university personnel management. This work package consists of two themes. The first theme is in the field of labor and personnel economics and considers the relationship between promotions, job assignments and incentives to perform in universities. The second theme is in the field of human resource management and relates to work experience, work stress, and management of professionals in a university context.

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Strategic investment under uncertainty: entry and mergers. 01/01/2007 - 31/12/2009

Abstract

The aim is to extend the real options framework with the large body of work in game theory. In this way a much richer description of optimal investment behavior can be obtained. We want to investigate decisions of firms about whether to enter a market or when being an incumbent, how to deter, blockade or accommodate entry. Moreover we focus on merger incentives induced by the desirability to enter new emerging markets. We are interested in effects of uncertainty.

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Competition policy in Europe: theory and applications to transport and sports broadcasting. 01/01/2006 - 31/12/2009

Abstract

In this project we use recent insights from the theory of industrial organization to study pricing and regulatory proposals in a number of specific economic sectors, including transport, sports and broadcasting. The emphasis lies on studying the positive effects of various policy proposals (access pricing of infrastructure, capacity competition on transport networks, allocation of television rights of sports games, etc.). Moreover, we also illustrate their welfare or normative properties. The choice of sectors is inspired by their increasing importance and the recent expertise of the promoters of the project.

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Regulation and competition policy. Decision making in merger control: the role of communication. 01/10/2005 - 30/09/2007

Abstract

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Endogenous entry barriers and competition in banking markets. 01/01/2005 - 31/12/2008

Abstract

Removal of legal entry barriers is often considered as an important step to make markets more competitive. Incumbents, however, may have incentives to create institutions that limit entry possibilities in order to create market power. This project will study several institutions that considerably determine the degree of competition in banking markets. In particular, this project contributes to the analysis of information asymmetries between banks (both between entrants and incumbents), switching costs (both informational and transactional), and contracts (short-term vs. long-term).

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Research team(s)

Entry, accomodation and mergers under uncertainty. 01/01/2004 - 31/12/2007

Abstract

As becomes apparent from the standard textbooks in industrial organization (cf. Tirole (1988)), the analysis of the effects of uncertainty within this field is yet underdeveloped. The aim of this project is to fill this 'empty hole'. To do so use will be made of the theory of real options. This is a relatively new concept meant to evaluate capital investment decisions of firms stressing the irreversibility of most investment decisions and the ongoing uncertainty of the economic environment in which these decisions are made. Until now real option theory mainly considers single decision maker problems of firms operating in monopoly or perfect competition markets.

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Measuring trust. 01/10/2003 - 31/12/2005

Abstract

A new game-theoretic approach to the study of interpersonal trust is proposed. The proposal is a variant of the well known Berg et al. (1995) trust game, in which the money multiplier is applied to the stage 2 transfer instead of the stage 1 transfer. As a result, altruism is largely eliminated as a driving force of player 1's decision to transfer money to player 2, and so this transfer is a more natural measure of trust.

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Competition and regulation: the role for government. 01/01/2003 - 31/12/2004

Abstract

The main objective of this project is to study the position of the government with respect to an optimal industrial organization of an economy. More specifically, we pay attention to the recent international trend of many Western governments moving from an active market player and market distorting regulator towards a more market oriented regulator and watchdog. In particular, the research project investigates the theoretical relationship between ex ante regulation an ex post intervention. Specific sectors will be the subject of this research project. The research methodology follows the New Industrial Economics approach where the analysis happens at the level of the industry with its specific characteristics. The research will in particular have applications for Belgium where the role of government in the organization of the Belgian industry is growing but only slowly compared to a country like The Netherlands of the UK.

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Research in the field of "New industrial economy and the role of the government". 01/10/2001 - 30/09/2008

Abstract

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01/01/2000 - 31/12/2003

Abstract

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Research team(s)

Effect of the liberalisation of the telecommunications market on competition. With special attention to mobile telephones. 01/01/1999 - 31/12/2002

Abstract

The proposed project aims to analyze the effects of the liberalization in the telecommunication industryon competition. Attention will be paid to both price and non-price competition (quality, new services). The general research methodology follows the New Industrial Organization. The analysis at the level of the industry, with its specific institutional features, is ventral and combines theoretical modeling with econometric structural analysis. The telecommunication industry is very complex and in the middel of major changes. It is useful to distinguish between various segments. Special attention wil be paid to competition in the market for mobile communication services. //..Starting from the specific situation of the telecom industry, in particular the market for mobile communications, theoretical models are developed and estimated to better understands the problems of diffusion, competition and government intervention. The advantage of the approach is a clear interpretation of the results an the possibility to calibrate the models based on realistic parameter values. In addition, the research results can help to bridge the still remaining gap between theoretical and emiprical research in Industrial Organization, and at the same time lead to normative implications for management (marketing) and public policy.

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