Firms enter into vast numbers of different contracts and agreements - with competitors, upstream buyers, downstream sellers, and with government or regulators – that bind each party to fulfilling particular commitments.
Contract design is complex because it is usually impossible to foresee and specify what the parties will do in every conceivable circumstance, and some parties to the agreement may have better information than others.
The challenge is to overcome these problems so that firms are able to realise the commercial intent of their plans without falling foul of competition law or regulatory rules. Economics provides the tools to identify the various incentive properties within a contract, and Frontier's expertise in regulation, strategy and finance enables us to rapidly to identify and address the key issues.
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