Juan Luis Jiménez

Evaluating Antitrust Leniency Programs

This paper identifies and then quantifies econometrically the impact of leniency programs on the perception of the effectiveness of antitrust policies using country level panel data for a 10-year span. Leniency programs have been introduced gradually in antitrust legislation across the globe to fight more effectively against cartels. We use the dynamics of the diffusion of such policy innovation across countries and over time to evaluate the impact of the program. We find that leniency programs have had a significant impact on the perception among the business community of the effectiveness of each country‟s antitrust policy. Leniency programs have become weapons of mass dissuasion in the hands of antitrust enforcers against the more damaging forms of explicit collusion among rival firms in the market place.

Price rivalry in airline markets: a study of a successful strategy of a network carrier against a low-cost carrier

In the post-liberalization period, competition has increased in airline markets. In this context, network carriers have two alternative strategies to compete with low-cost carriers. First, they may establish a low-cost subsidiary. Second, they may try to reduce costs using the main brand. This paper examines a successful strategy of the first type implemented by Iberia in the Spanish domestic market. Our analysis of data and the estimation of a pricing equation show that Iberia has been able to charge lower prices than rivals with its low-cost subsidiary. The pricing policy of the Spanish network carrier has been particularly aggressive on less dense routes and shorter routes.

(No) Competition in the Spanish Retailing Gasoline Market: A Variance Filter Approach

Various methodologies in economic literature have been used to analyse the international hydrocarbon retail sector. Nevertheless at a Spanish level these studies are much more recent and most conclude that generally there is no effective competition present in this market, regardless of the approach used. In this paper, in order to analyse the price levels in the Spanish petrol market, our starting hypothesis is that in uncompetitive markets the prices are higher and the standard deviation is lower. We use weekly retail petrol price data from the ten biggest Spanish cities, and apply Markov chains to fill the missing values for petrol 95 and diesel, and we also employ a variance filter. We conclude that this market demonstrates reduced price dispersion, regardless of brand or city.

Debating as a classroom tool for adapting learning outcomes to the European higher education area

The creation of the European Higher Education Area has meant a number of significant changes to the educational structures of the university community. In particular, the new system of European credits has generated the need for innovation in the design of curricula and teaching methods. In this paper, we propose debating as a classroom tool that can help fulfill these objectives by promoting an active student role in learning. To demonstrate the potential of this tool, a classroom experiment was conducted in a bachelor’s degree course in Industrial Economics (Regulation and Competition), involving a case study in competition policy and incorporating the techniques of a conventional debate (presentation of standpoints, turns, right to reply and summing up). The experiment yielded gains in student attainment and positive assessments of the subject. In conclusion, the incorporation of debating activities helps students to acquire the skills, be they general or specific, required to graduate successfully in Economics.

The Impact of ETA’s Dissolution on Domestic Tourism in Spain

In late 2011, the Spanish terrorist organization ETA announced the end of armed violence after more than forty years of illegal activity. While the existing literature has already established the negative impact of terrorist actions on international tourism in a particular region, this paper aims to determine whether ETA’s final ceasefire and definitive dissolution had a positive impact on domestic tourism in Basque Country. To that end, a directed gravity model is estimated over a panel data-set of 699 domestic tourist flows between the Spanish regions from 2008 to 2013. Results suggest that the negative impact on visitor flows was localized in the Basque Country. Also, regardless of a permanent ceasefire announced in 2010, only the 2011 ‘definitive cessation of violence’ had an immediate significant impact on the number of visitors to the Basque Country. These results complement the scarce literature on post-conflict tourism analysis and may have implications for regional authorities in affected regions in their efforts to rebuild their destination brands.

The economic competitiveness of short sea shipping: an empirical assessment for Spanish ports

This paper empirically studies the competitiveness of selected Short Sea Shipping (SSS) corridors by comparing the generalised costs of different alternatives to move cargo from Spain to several European destinations either by road or by using a SSS multimodal corridor. In the context of fair and efficient intermodal competition promoted by European Union (EU) policies, our results show that, apart from the internalisation of the external costs and the existence of bottlenecks in transit times, the freight rates should be also considered as a critical factor in explaining why a particular SSS corridor is more/less competitive than its road alternative. For that reason, we perform an econometric analysis to determine the main drivers of maritime prices in several SSS routes and quantify to what extent the instruments promoted by EU maritime policies – higher frequencies, fiercer competition or direct subsidies – favour real price reductions on them.

Regional finance and competition policy: the Canary Islands petrol market

Market competition levels affect all agents of an economy: businesses, consumers and the State. Traditional analysis has evaluated the States effects on the other agents, but no analysis has been conducted regarding the inverse relationship. Thus, the aim of this study is to estimate the tributary income losses that low levels of competition in the retail petrol market could cause in it, using the data from Canary Islands Autonomous Community. First, we will use Parker and Röllers methodology (1997) to measure the level of competition and confirm a deficiency. Then, using estimated rates, we will determine the differences that would appear in tributary income if the market were to behave as a Cournots model. Our results show that the lack of competition causes a substantial loss of tributary income for this region, somewhere between 5and 10% of the real income from the tax on unleaded petrol for the year 2004.

Tourism and high speed rail in Spain: Does the AVE increase local visitors?

This paper analyses from an empirical point of view the relationship between the provision of high-speed rail services (HSR) and the evolution of tourism at the local level in Spain. We have built a database of 124 municipalities during the 2005-2012 period to study the effects of the introduction of new HSR corridors on the number of visitors and their total and average stay at several end-line and intermediate cities as compared to similar counterparts not having such an infrastructure. We combine both difference-in-difference and panel data techniques to find that these effects are, in general, extremely weak or just restricted to larger cities, once other determining factors are controlled for. JEL classification: R42; R53; L83

Do maritime passengers’ subsidies in Europe affect prices?

ABSTRACT Some European governments subsidize their residents when they travel at sea. This paper seeks to analyze the impact on prices of maritime passengers’ subsidies in Europe. Following a review of the scarce academic literature on this topic and the subsidy scheme in Europe, a sample of firms’ prices and other characteristics of 40 European routes for 2016 are analyzed. Both an estimation of a price equation and a matching approach are applied and reach the same conclusion: prices per kilometer are around 40 per cent higher on those subsidized routes due to subsidies. This outcome reduces the potential subsidy gain to consumers.

The European Commission's Fight against Cartels (1962-2014): A Retrospective and Forensic Analysis: An analysis of the EC's fight against cartels

On the basis of information collected from all the published European Commissions decisions in cartel cases between 1962 and 2014, this paper identifies different stages in the supra†nationalization of cartel policy at the European Union (EU) level. It analyzes major competition policy reforms, strategies and initiatives taken by the European Commission (EC), and its relationship and interaction with Member States’ resistance and other policy players’ positions, which offers a new in†depth study on the history and political economy of a key pillar of EU integration. It also provides a forensic analysis of the sanctioned cartels at each stage. This study shows that the introduction of the leniency programme was a critical juncture that allowed cartel authorities to identify cartels more effectively and to provide evidence for sanctioning collusion much more easily than before. This success was a key determinant for deepening the EU integration in competition policy. The intended drivers and the paradoxically unexpected shifters of such growing integration in cartel policy enforcement at the EU are discussed.