New bulletins for June

We published four new bulletins in June, covering topics ranging from information and communications technology to airports and Twenty20 cricket. 

Bundles of Joy takes a look at the economics of “free” broadband offers which have become very popular recently.  We ask whether such offers are likely to maximise the lifetime profitability of customers, or represent a rush for market share.  More importantly, we consider whether they will secure providers a sustainable advantage.

Staying with the telecoms industry, Belt and braces considers the allegations of “margin squeeze” abuses that have been at the centre of a number of recent investigations by the European Commission and national competition authorities. We examine the limitations of tests traditionally applied by competition authorities, and explain how wider economic analysis may help to enhance their decisions.

Competition between airports is the subject of Keeping the lid on.  This bulletin describes our recent analysis of how passengers choose between airline services at different airports; work that was influential in persuading the UK Government to continue to regulate landing charges at Stansted Airport, despite advice to the contrary from the Civil Aviation Authority.

Finally, and perhaps more seasonally, in How’s that? we look at the recent auction of cricketers to business and media groups as part the new Indian Premier League Twenty20 competition. Many players will become rich for six weeks’ play but our analysis shows that the auction has resulted in both bargains and bonanzas: that batsmen have done relatively poorly, while the youngest Indian cricketers have done exceptionally well. Disappointingly for England’s cricketers, some may have earned six-figure sums had they participated.