Tuesday, February 24, 2009
Posted by D. Daniel Sokol
In a newly released document, the British Competition Commission released a statement on best practices for economic submissions.
The Competition Commission (CC) has published a short document outlining guiding principles for parties to follow when submitting technical economic analysis to the CC as part of an inquiry.
Over recent years the CC has received a growing number of submissions featuring complex economic analysis and expects this number to increase further in future. Whilst welcoming such submissions, the CC believes it would be helpful to set out some broad principles on what they should include. This will help parties make their submissions as effective as possible and save time and resources that can be wasted debating points and trying to understand methods.
Whilst detailed economic analysis can be useful in helping the CC reach informed decisions, it also needs to be able to examine and test such analysis rigorously. The document, available at www.competition-commission.org.uk, therefore stresses that the CC needs to be able to understand how results are obtained as well as seeing the results themselves.
Parties making submissions should outline and justify the methodology underlying their analysis, describe the techniques used and be prepared to supply relevant data so that the CC can replicate any analysis. Parties are also reminded that effective submissions should —as much as possible—be comprehensible to non-economists.