GSE Consulting Day 2010: OXERA

Applying economics to the real world

Barcelona GSE presentation

Dr Álvaro Cartea

Associate Consultant

February 26th 2010

February 20102

Overview

- Oxera’s skills

- Oxera’s employees

- Oxera’s clients and projects

- How to apply?

February 20103

What does Oxera do?

- a leading European consulting firm focusing on economics

- 25 years’ experience

- over 100 members of staff, including 62 consultants

- close links with leading academics (Oxera Associates)

- clients include major European and international companies, regulators and governments

- we combine core economic skills with detailed industry expertise

- with offices in Oxford, Brussels and London

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Oxera’s sectors and skills

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Our approach

- Oxera applies economic analysis to ‘real-world’ problems in order to help companies, policy-makers and regulators make strategic decisions.

- Our clients value us for our independence, and this, combined with the integrity with which we approach economic and policy-related challenges, has led them to return to Oxera time and again.

- Our most valued strength is our ability to take knowledge developed in one sector and apply the lessons learnt to another, delivering thinking that often stretches the boundaries of traditional market analysis.

- Our consultants share a strong and diverse knowledge base, founded on real-life experience, and our project teams bring together multiple disciplines to enable the delivery of the most comprehensive analysis possible.

February 20106

Overview

- Oxera’s skills

- Oxera’s employees

- Oxera’s clients and projects

- How to apply?

February 20107

Dr Luis Correia da SilvaManaging Director

Qualifications

- DPhil Economics, University of Oxford

- MBA European Studies, Solvay Business School, Belgium

- MSc Economics, Université Libre de Bruxelles, Belgium

- BA Economics, Université Libre de Bruxelles, Belgium

Project experience

- Profitability analysis in various Competition Commission cases

- Leads Oxera’s economics advice to Royal Mail, Southern Water, Yell and various financial services firms in Europe

- Directs projects for the European Commission on investor protection and other related issues in the financial services sector

Luis works on finance, competition, regulation and policy issues across a wide range of industries.

February 20108

Leonie BellManaging Consultant

Qualifications

- DPhil Economics, University of Oxford

- MPhil Economics, University of Oxford

- BA Economics, University of Durham

Project experience

- Conducted a study of insurance guarantee schemes in the EU for the European Commission

- Examined the shift to defined-contribution occupational pensions in EU Member States and the risks and advantages

- Evaluated for the European Commission the impact of investment restrictions for pension funds in the EU Member States

Leonie specialises in the economics of the financial services sector and corporate finance and is the manager of our Brussels office.

February 20109

James KavanaghSenior Consultant

Qualifications

- MSc Economics, University College London

- BA Philosophy, Politics and Economics, University of Oxford

Project experience

- Advice on regulatory strategy for a major European telecoms group

- Economic advice in UK High Court litigation on media rights agreements in the horseracing industry

- Economic advice to a major retail bank in the UK High Court test case on unarranged overdraft charges

James specialises in the economics of competition policy, with a focus on the communications and financial services sectors.

February 201010

Leandro AriasConsultant

Leandro specialises in economic regulation, with emphasis on modelling and finance, particularly in the context of the water sector. Before joining Oxera, Leandro worked for several Latin American and African regulators building economic and financial models for utilities.

Qualifications

- MSc Economic Regulation and Competition Policy, City University, London

- BSc Economics, University of Buenos Aires, Argentina

Project experience

- Supporting the Environment Agency assessing strategic options for its Integrated Water Resource Planning and Management

- Supporting a large European postal operator assessing pricing opportunities under competition law restrictions

- Advising a major water and sewerage company during the 2004 price control review in England and Wales

February 201011

Tom HoeAnalyst

A member of Oxera’s Modelling team, Tom specialises in cross-section and panel-data techniques for econometric analysis. Prior to joining Oxera, Tom taught post- and undergraduate econometrics courses at the University of Manchester.

Qualifications

- MSc Economics and Econometrics, University of Manchester

- BSc Economics, Victoria University of Manchester

Project experience

- Forecast the short- and long-term demand for aggregate and sector-specific infrastructure in the UK for a major infrastructure investor

- Modelled the impact of Ofcom’s spectrum liberalisation decision on the demand for 2.6GHz spectrum and its efficiency implications for the forthcoming UK auction

- Analysed the comparative efficiency of UK university departments in offering value for money to students using linear regression techniques

February 201012

Overview

- Oxera’s skills

- Oxera’s employees

- Oxera’s clients and projects

- How to apply?

February 201013

Some of Oxera’s clients

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Project 1: BBC’s long term costs

In 2006, Oxera examined if BBC’s future efficiency projections appeared appropriate, which included both how the BBC's plans compared with external benchmarks and its estimate of future input price growth.

Several approaches were considered that were then adjusted to provide a range of long-term annual operating cost reduction benchmarks:-examining sectoral/economy-wide total factor productivity (TFP) growth;-examining the BBC's historic performance;-estimating appropriate rates of productivity improvements from a review of academic literature on privatisation;-constructing a composite TFP-based benchmark;-examining real unit operating cost reductions set for regulated companies by UK regulators.

February 201015

Project 2: Costs related to the collapse of a train tunnel

- In 2005 the collapse of a rail tunnel disrupted rail traffic on routes into and out of London

- A train operator commissioned Oxera to assess the economic damages it sustained

- Oxera worked closely with the train operator's management and legal team to assess the loss in revenues caused by the collapse

- The approach involved estimating the counterfactual level of revenues in the absence of the tunnel collapse using a variety of statistical and econometric techniques

- These estimates formed the basis of the settlement between the parties

February 201016

Project 3: Fortis - ABN-Amro Merger

- Economic adviser to Fortis, on all areas covered by the European Commission’s inquiry into the merger between Fortis and ABN AMRO

- Fortis is part of a consortium of three banks that have taken over ABN AMRO, in one of the largest merger in the the banking and insurance industry

- Oxera’s work involved - product market definition (classics such as personal current

accounts & savings but also private banking or factoring)- analysis of interest rate spreads- assessment of barriers to entry, bundling, cross-subsidies on the

base of the relevant economic literature- The merger was cleared (with remedies) in Phase 1 of the European

Commission investigation.

February 201017

Overview

- Oxera’s skills

- Oxera’s employees

- Oxera’s clients and projects

- How do I apply?

February 201018

Why Oxera?

At Oxera you will

– Meet and influence decision-makers in business and government

– Develop your intellectual capital

– Have your ideas taken seriously

– See your advice have an impact in the real world

February 201019

Oxera’s working environment

– Cooperative and friendly

– Stimulating and challenging

– Professional and disciplined

– At the forefront of business development

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What are we looking for?

– An excellent academic record

– A creative and analytical mind

– The ability to communicate

– Self-discipline and self-motivation

– The ability to work in a team

– Enthusiasm and commitment

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How to apply?

We are currently recruiting

for permanent positions

as analysts and consultants

so talk to us now or visit

www.oxera.com for more information

www.oxera.com

Contact:

Alison Gomm+44 (0) 1865 253 000

[email protected]