OFT Research Paper on quantitative techniques in competition analysis

United Kingdom

When evaluating competition, regulatory bodies observe and analyse the market using a variety of quantitative techniques. The OFT has commissioned and published a research paper (Quantitative techniques in competition analysis) which compares the tools available and studies the application and potential pitfalls of quantitative analysis. LECG (the paper’s author) examine how 15 data analysis techniques can help regulators to investigate potential competition abuses. The OFT has commented that it is often inappropriate for it to use quantitative analysis; although it is likely that the Competition Commission will use such techniques at its stage of the investigation. The paper looks at the pros and cons of each technique (competition technique, demand technique and pure technique) and also the pitfalls of quantitative analysis, observing that it is never applied in isolation from other information. OFT Research paper "Quantitative techniques in competition analysis", 17 October 1999