News
The Irish Commission for Aviation Regulation has published its draft decision on the maximum level of Airport Charges at Dublin Airport over the 2020-24 regulatory period. For the allowed rate of return on capital, the authority has relied on a report prepared by Swiss Economics.
Our report reflects that financial markets are currently undergoing exceptional times. Real government bond yields have fallen to a historically low level in the past couple of years, suggesting that the real expected return from risk-free assets is currently negative. Traditional approaches to estimating the cost of capital may fail to adequately capture the peculiarities of this new market environment. Hence, we assessed whether the ECB’s recent halt of quantitative easing is likely to have a significant effect on the market and analysed whether financial markets expect bond yields to rise again in the near future. Also, we considered evidence that expectations on equity returns may be more stable over time than underlying risk premia, indicating a so-called Total Market Return approach may be preferred over the traditional Equity Risk Premium approach to estimate the cost of equity.
The full report can be downloaded from the Commission for Aviation Regulation’s website.
Does digitalization require new rules for the international taxation of companies? OECD and the European Union try to change international tax law in favour of countries where consumption takes place.
In der aktuellen Ausgabe der Zeitschrift für Europarecht hat Christian Jaag zusammen mit Luzius Cavelti einen Leitartikel zum Thema «Die Bedeutung der Digitalisierung für das internationale Unternehmenssteuerrecht» publiziert.
At the inaugural Who's Who Legal Switzerland Awards ceremony on April 3, 2019, in Zurich, Christian Jaag received the Competition Economists Switzerland Expert of the Year 2019 Award. Each year Who's Who Legal presents awards to individuals that have performed exceptionally well in each of the featured practice areas according to Who's Who Legal's research.
Who's Who Legal finds that "at Swiss Economics, Christian Jaag is definitely a brilliant economist to work with according to sources. They note he is the strongest competition economist in Switzerland and enjoys a very good reputation for his work in the field."
To the article.
Michael Funk recently gave his interpretation of the influential Post Denmark II decision to an audience at the Annual Conference of the Leibniz ScienceCampus 2019 Mannheim Centre for Competition and Innovation (MaCCI).
At the Annual Conference of Mannheim Centre for Competition and Innovation, Michael Funk presented a Swiss Economics research paper on competition economics. He argues that a notional as-efficient competitor, often used in the economic assessment of abuse of dominance cases, can be too efficient to be of relevance in practice. In particular, joint costs, which are required to comply with a Universal Service Obligation, should not be considered sunk when determining the cost structure for other services or else there is a risk of imposing unrealistic efficiency standards on competitors.
Bundesnetzagentur published the latest benchmarking report by Swiss Economics. In the report, methodical details are carried out and the results are documented.
Swiss Economics, together with SUMICSID and IAEW carried out an efficiency comparison of electricity distribution system operators in the third regulatory period. Analyzed in detail was, among others, the illustration of decentralized generation. The published draft contains all important methodical aspects and documents the results. For the benchmarking, around 200 system operators were compared based on their cost efficiency. The final version will follow after the system operators have had the opportunity to comment on the draft.
Swiss Economics and COMCO present a case at the Annual conference of the Association of Competition Economists (ACE)
Screening tools can mitigate the dependency on whistleblowers and leniency applicants and enable the authorities to fight against bid rigging cartels proactively. The Investigation "See Gaster" in Switzerland was triggered by an ex-ante screening method developed by the Swiss Competition Commission. In the session, Yavuz Karagök (ComCo), Frode Steen (Norwegian School of Economics) and Michael Funk (Swiss Economics) discuss the strengths and weaknesses of screening methods with a concrete example.
Swiss Economics analyses the impact of the sharing economy on public transport.
Swiss Economics has investigated the impact of the sharing economy on public transport together with the University of Lucerne. Based on our discrete choice experiments we conclude that regulations are critical for the expected modal split.
Samuel Rutz's article «Screening for «Bid Rigging Does it Work?» was recently published in the Journal of Competition Law & Economics.
The article discusses a screening method to detect bid rigging cartels. Based on the findings of the authors, the Swiss Competition Commission (COMCO) opened an investigation and sanctioned several firms for bid rigging.
Christian Jaag was named «leading expert» in the categories Legal Competition and Consulting Experts. Samuel Rutz was honoured as a «future leader» in the categories of Competition and Consulting Experts.
Dr. Christian Jaag and Dr. Samuel Rutz have recently been featured in Who's Who Legal 2018.
Christian is listed in Who's Who Legal: Competition as a leading economist. WWL says: «Christian Jaag is a superb competition economist who is regularly called on to advise both public and private-sector clients on strategy, regulation and policy.»In addition, he is listed in Who's Who Legal: Switzerland. WWL writes: «Christian Jaag is widely recognised as «a leading competition economist» and impresses peers with his «highly creative, precise and hands-on approach», as well as his «impressive theoretical and practical skills». Lastly, Christian is listed in Who's Who: Consulting Experts.
To Christian's biography on WWL
Samuel is listed as a future leader in Who's Who Legal: Competition and Who's Who Legal: Consulting Experts.
The article «The more economic approach to predatory pricing» was recently published in the Journal of Competition Law & Economics.
Abstract: The «more economic approach» was introduced to antitrust to achieve a more effect-based and theoretically grounded enforcement. However, related to predatory pricing it resulted in systematic over- and under-enforcement: Economic theory does not require dominance for predation to be a rational (and harmful) strategy, although an ex-ante dominant firm would often refrain from predation. Hence, within the current legal framework which requires dominance for antitrust to apply, a more effect-based and theoretically grounded antitrust enforcement cannot pursue harmful predation. Therefore, we suggest separating predatory pricing from the exclusionary abuse of a dominant firm, both legally and analytically. Instead, predatory pricing should be analyzed along the same logic as a merger. In particular, we argue that three elements from merger control should be adopted: in the absence of dominance, market share and/or turnover thresholds may serve as a de minimis rule; recoupment should be analyzed similarly to the competitive effect of a merger between the predator and its prey, and a stronger efficiency defence should be established.
The partnership with OCA strengthens Swiss Economics' competencies in the areas of calculation of damages. OCA will also allow us to more effectively support clients in multinational and multilingual disputes.
Swiss Economics is delighted to announce the recently established partnership with French audit and consulting firm OCA. This new collaboration strengthens our capacity to offer multi-jurisdictional and multilingual dispute resolution services.
OCA has successfully assisted its clients during commercial and financial arbitration and litigation across various countries. The firm's technical capabilities in the area of Corporate Finance and Valuation perfectly complement Swiss Economics' skills in Competition Economics and Industrial Organisation. In collaboration with OCA, we are able to offer our clients both, top-down empirical and conceptual economic evidence as well as detailed bottom-up asset valuation, leading to even more robust results.
In addition, the partnership will allow us to ramp up large-scale case teams proficient in German, French, and English and be able to provide our clients with rigorous analysis under tight time constraints.
For more information, please contact Swiss Economics Managing Partner Christian Jaag or OCA Chairman Mikaël Ouaniche.
We welcome two new team members.
Melanie Häner is a Consultant working on economic policy and competition projects
A lecture by Christian Jaag.
A lecture by Christian Jaag.
In a collaboration with Professors Pierre Fleckinger and Constance Monnier, both affiliated with OCA, our competition law disputes partner in France, Tobias Binz and Christian Jaag authored an article on the sensitivity underlying theoretical predictions of the pass-on rate. The article has been published in Concurrences N°4-2019.
The article can be accessed online through the Concurrences website.
Christian Jaag gave the opening keynote at the CV summit Frankfurt which is part of this year’s Euro Finance Week.
Christian Jaag shared his thoughts on “Be your own bank? The role of financial institutions in a decentralized economy”.
The Irish Commission for Aviation Regulation has published its Final Determination on the maximum level of passenger levies that Dublin Airport may charge over the 2020-24 regulatory period.
The new price cap regime ensures that passengers travelling through Dublin Airport will experience high-quality services at a reasonable cost. Swiss Economics advised the Commission on the appropriate allowance for capital costs. In our work, we considered recent developments in financial markets, Dublin Airport’s ambitious investment plans, differences in risk profiles across airports, and many other factors that play a role in determining the regulatory WACC. The Commission has published our report alongside its Final Determination on its website.
To the Swiss Economics report
To the Final Determination of the Commission for Aviation Regulation
At the "Infrastrukturtagung 2019" Christian Jaag presented a literature overview on the effects of climate change on Swiss infrastructures.
Abstract of the report:
"Wie wird sich der Klimawandel auf die Schweizer Infrastruktursektoren auswirken? Im Rahmen eines Literaturüberblicks werden Studien aus dem In- und Ausland ab dem Jahr 2007 ausgewertet. Die zusätzlichen Schäden entstehen durch den schleichenden Klimawandel und Extremereignisse. Neben dem Transport- und dem Energiesektor sind auch die Wasserversorgung, Industrieinfrastrukturen, soziale Infrastrukturen und der Tourismus betroffen. Obwohl der Klimawandel insgesamt mehr Schaden als Nutzen bringt, hat er auch positive Auswirkungen. Zum Beispiel kommt es zu weniger kältebedingten Schäden an Strassen und Schienen und die Ausgaben für Heizenergie sinken. Mit steigenden Temperaturen nimmt auch die relative Attraktivität der Schweiz als Sommer-Tourismusdestination zu. Sämtliche verfügbaren Quantifizierungen der Auswirkungen des Klimawandels sind allerdings noch mit grossen Unsicherheiten behaftet."
Christian Jaag becomes an Advisor to the Centre for Evidence Based Blockchain (CEBB) and Swiss Economics' Centre for Cryptoeconomics joins the CEEB as an institutional member.
CEBB is a neutral, independent and decentralised consortium of leading Blockchain research institutions.
Led by some of the world's most eminent academics, CEBB will devise scientific benchmarks and frameworks to support governments, businesses and policymakers in making evidence-based decisions. As a collective voice on the advancement of Evidence-Based blockchain, the academic "Think Tank" of thought leaders and researchers endeavours to establish internationally agreed standards on education, research and policy-making for blockchain technologies. CEBB will also support organisations in setting up regional and institutional EBB chapters, run by the CEBB Leads. CEBB will also assist with the advancement of high-quality research, call for papers and dissemination of scholarly content within the CEBB network. It will also facilitate joint initiatives, workshops, journal clubs, and other academic activities with CEBB members.
Christian Jaag spoke at the UPU World CEO Forum about Blockchain in the postal sector.
As digitalization takes hold and affects whole swathes of national economies, businesses need to adapt and innovate more rapidly than ever. In this context, blockchain and cryptographic technologies can be part of the answer. Yet, there are several possible elements to innovation in this area. An increasingly popular idea is to have start-ups develop the innovations that postal operators will later apply to their business processes. Christian Jaag had an Interesting discussion with Moses Ma, Derek Osborn and the world's postal CEOs about how they have considered and/or applied blockchain innovations in the international postal sector, including through partnerships with start-ups.
Following an in-depth merger examination, the Swiss Competition Commission (COMCO) cleared the transaction Sunrise | Liberty Global on 23 September 2019 without any remedies. Swiss Economics closely accompanied the examination from the outset with economic expertise.
According to COMCO, the transaction will not lead to the creation or strengthening of a dominant position in any of the markets analysed. Rather, COMCO expects the takeover to stimulate competition. Further details can be found in the COMCO press release.
Swiss Economics collaborated during the whole merger examination closely with Meyerlustenberger Lachenal Ltd. (MLL), who advised and represented Sunrise in this merger control proceeding from the outset. Swiss Economics was – inter alia – responsible for data handling, contributed to the economic analysis in all phases of the merger control proceeding and drafted several reports. Our team included Samuel Rutz, Michael Funk, Matthias Hafner and Tobias Binz. On the part of MLL, the team was led by Mario Strebel and included Fabian Koch, André Berne and Göktug Gürbüz. The close collaboration between Swiss Economics and MLL ensured optimal case management both from a legal and economic perspective.
The redistribution from the rich to the poor is very important, as a new study by the University of Lucerne, in which Melanie Häner was involved, shows. A summary of the study was published in today's Neue Zürcher Zeitung.
In addition to a redistributive effect between generations, the OASI also has a redistributive effect from rich to poor. OASI contributions above a certain income have the character of a "high-wage tax" and the minimum pension acts as a basic income for pensioners. The NZZ article by Christoph Schaltegger, Christian Frey and Melanie Häner quantifies the extent of this redistribution.
Publication of a proposal for an amended Swiss electricity market design. Guarantees of origin play a crucial role.
Author: Urs Trinkner
Samuel Rutz speaks about health tourism in "Schweiz Aktuell", a daily news broadcast of the Swiss Broadcasting Corporation (
The video clip can be accessed through the SRG's website.
Who’s Who Legal 2019 featured Samuel Rutz, Michael Funk and Christian Jaag for their outstanding work in competition economics.
Samuel Rutz is mentioned in the following categories:
- - Competition - Economists
- - Experts - Economics - Competition Economists
WWL says: Samuel Rutz is a well-recognised figure in the Swiss market who is commended for his profound knowledge of competition regulation and policy.
Michael Funk is mentioned in the following categories:
- - Competition Future Leaders - Economists
- - Experts - Economics - Competition Economists - Future Leaders
WWL says: Michael Funk is recognised by peers as an "experienced competition economist" who is able to draw on his "great background" at the Swiss investigation authority.
Christian Jaag is mentioned in the following categories:
- - Competition - Economists
- - Experts - Economics - Competition Economists
- - Switzerland - Competition Economists
WWL says: At Swiss Economics, Christian Jaag is lauded as “one of the very best economists active today” who is “able to convey and explain highly complex matters to a broad range of audiences”. He possesses “in-depth knowledge of the area” and is known for his “great ability to challenge traditional concepts”.
We concluded the celebrations for our 10th anniversary with a trip to the Monte Rosa Hut.
We concluded the celebrations for our 10-year-anniversary with a trip to the Monte Rosa Hut in the Swiss Alps close to Zermatt. Guided by Peter Schoch we enjoyed the beautiful nature between Matterhorn and Monte Rosa.
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Start towards Monte Rosa |
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"Edelweiss" on the wayside |
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Entrance of the Gorner Glacier |
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Monte Rosa Hut during dinner |
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| On the panoramic tour back to Zermatt |
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Crevasse in the upper part of the Gorner Glacier |
Swiss Economics' center for cryptoeconomics is awarded with the Fintech Award "Best Economic Research & Consulting Services 2019 - Europe" hosted by Wealth & Finance International.
To the Award
More on the Center for Cryptoeconomics (cryptecon)
Swiss Economics is happy to announce the new collaboration with CV VC, a Swiss venture capital company for start-ups using Blockchain technology.
Swiss Economics' collaborates with CV VC, the largest investment ecosystem for start-ups using Blockchain technology in Zug, Switzerland. Swiss Economic's platform for blockchain and cryptocurrencies (cryptecon) mentors the participants of the CV Labs Incubation Program. The first edition of the program is now ongoing. Out of 500 applications from 35 countries, 12 startups were selected to participate in the program.
Christian Jaag and Matthias Hafner met the start-ups and presented their expertise and experience in platform and monetary economics for token-based projects. They presented the most important characteristics, considerations and decisions to be made when designing token-based ecosystems.
Urs Trinkner presented his views on how to improve the institutional design of the Swiss rail market at the Lucerne symposium "20 years of railways reform".
To the presentation
To the program
Michael Funk gave two speeches at the 27th Conference for Postal and Delivery Economics in rainy Dublin.
Michael Funk presented his interpretation of the seminal Post Denmark II decision as well as a paper by his colleagues Andreas Haller, Christian Jaag, and Urs Trinkner on the funding of the USO and net cost balancing. As always, this yearly conference of academics and practitioners provided a tremendous opportunity for learning and connecting.
Publication of Samuel Rutz and Urs Trinkner on the economics of water and whether Swiss water utilities should be privatised or not.
Wasser ist aus ökonomischer Sicht kein öffentliches Gut. Gleichwohl kann die leitungsgebundene Wasserversorgung nicht unbesehen den Marktkräften überlassen werden, da insbesondere beim Verteilnetz ein «monopolistischer Engpass» besteht. Die Ausgangslage präsentiert sich ähnlich wie bei Strom-, Gas- und Schienennetzen: Entweder erbringt die öffentliche Hand die gewünschte Versorgung selbst, oder sie übergibt diese an öffentliche oder private Leistungserbringer. Im zweiten Fall gewährleistet er die Qualität der Wasserversorgung durch Regulierung. Aus ökonomischer Sicht sind beide Wege gangbar. Für Schweizer Gemeinden, die über eine gute direktdemokratische Kontrolle verfügen, kann die öffentliche Eigenerbringung vorteilhaft sein.
Autoren: Samuel Rutz, Urs Trinkner