Archive for category Blogs

Restructuring Spanish Regulators

CNMC: The Story of an Unfinished Reform (“La CNMC: la historia de una reforma inacabada), by Juan Delgado and Héctor Otero. PAPELES DE ECONOMÍA ESPAÑOLA. Regulación y política de defensa de la competencia en España; no. 135. September 2015.

Entry blog (In Spanish): La CNMC: Historia de una Reforma InacabadafuncasBlog, 25 September 2015.

In 2012, the Spanish government proposed the merger of the antitrust authority together with six sectoral regulators in a single authority, the National Commission for Markets and Competition (CNMC). The reform was justified by the need for better coordination between regulators, to improve the consistency of their respective decisions and to reduce their operational costs. The design of the new institution however does not necessarily guarantee that those potential benefits will be materialized. Improving decision-making mechanisms, creating a more horizontal organization and strengthening the financial and functional autonomy of the regulator would facilitate the generation of synergies that so far do not seem to have arisen.

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Competition in the Supermarket Sector in Latin America

Market Structure, Growth and Competition in the Supermarket Sector in Latin America, by Juan Delgado. Background note for Session III of the 13th meeting of the OECD-IDB Latin American Competition Forum on 23-24 September 2015 in Jamaica. September 2015.

Op-ed: Competition in the Supermarket Sector in Latin America. Competition Policy International. Latin America Column. 26 October 2015.

Supermarkets play a limited but increasingly important role in Latin-America groceries retail markets. Traditional grocery retailers still play a substantial role in most Latin American countries and the penetration of supermarkets is still behind the developed countries. Paradoxically, within the supermarkets sector, concentration is high and a small number of large players are present in several countries. As personal income increases, the size of the middle class grows and the logistics and transport infrastructure develops, supermarkets are expected to expand further becoming the main gatekeeper for most grocery products. As supermarkets penetration increases, there is generally a process of transfer of market power from manufacturers and producers to retailers. In Latin America, producers and manufacturers still have substantial market power (and, consequently, bargaining power) in several product markets. However, recent cases and commercial practices show that such bargaining power is eroding in favour of large supermarket chains, changing the competitive dynamics of retail markets.

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Antitrust Law and Economics

Jueces, Derecho de la Competencia y Economía (Judges, Antitrust Law and Economics) by Juan Delgado.

Nada es Gratis, un blog de economía casi siempre en español.

The recent decision of the European General Court (EGC) on the Intel case is a serious setback to the role of economic analysis in EU antitrust. Although the conclusions of EGC coincide with those of the European Commission, the means to reach them differ. The EGC considers the economic analysis conducted by the Commission superfluous and bases its argument on a purely formal analysis. This means that not only the enforcement of antitrust law in Europe moves away from the international standard, but also it jeopardizes the ultimate goal of competition policy: to promote competition for the benefit of consumers.

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Restructuring the Spanish Power Industry

El Sudoku Eléctrico I: un Diagnóstico (The Spanish power industry sudoku: a diagnostic)

El Sudoku Eléctrico II: un Marco para su Reforma (The Spanish power industry sudoku: a framework for restructuring)

By Juan Delgado.

Nada es Gratis, un blog de economía casi siempre en español.

The Spanish Government is in the process of restructuring the power sector. Juan Delgado offers a diagnostic and a framework for restructuring in the economics blog “Nada es Gratis”. Competitive markets, capacity markets, a long term renewables support mechanism and a transparent price formation process are proposed as the axes of a long-term perspective restructuring process.

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Effective and Independent Regulators

La reforma de los Organismos de Regulación (I): Los límites a la integración (The reform of the regulatory agencies in Spain (I): Limits to integration).

La reforma de los Organismos de Regulación (II): Mejoras en la gobernanza (The reform of the regulatory agencies in Spain (and II): Improving governance).

By Juan Delgado, Julio García Cobos and Antón García Díaz.

Nada es Gratis, un blog de economía casi siempre en español.

Regulatory and antitrust agencies must be independent and effective. What is the best configuration to guarantee such independence and effectiveness? In a series of posts, J. Delgado, J. García Cobos and A. García Díaz discuss alternative options to improve the institutional quality of regulation in Spain.

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Consumers and Energy

¿Por qué el consumidor no quiere elegir suministrador de energía? (Why do consumers not choose energy provider?), by Paulina Beato and Juan Delgado

Nada es Gratis, un blog de economía casi siempre en español.

Consumers have the possibility to choose their energy provider in Spain. However, consumers do not switch. The limited benefits from switching provider and the poor design of the regulatory setup are the cause of such behaviour.

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Are we bothered by competition?

¿Cuánto nos interesa la competencia? (How much are we bothered by competition?), by Juan Delgado and Andrés Gago

Nada es Gratis, un blog de economía casi siempre en español.

Antitrust authorities wonder how to measure the impact of their actions with the aim of improving their effectiveness. Simple measures can help.

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