expertise

Social cost-benefit analyses reveal whether the benefits of policies outweigh the disadvantages, whereby the objective is to express all effects - both financial and non-financial - in terms of their monetary value. This integral SCBA approach is of great value to the assessment of a wide range of policy plans. 

SEO Economic Research possesses a wealth of expertise in this field: Professor Carl Koopmans is an authority in SCBA methods and their applications. The Care & Social Security Cluster implements the SCBA method in the care sector, the Competition & Regulation Cluster makes regular use of SCBA for energy policy and (even) for cultural facilities and the Labour & Education Cluster for measures in the labour market. SCBA was originally developed for transport infrastructure. SEO Economic Research possesses the (macro)economic insights required to implement the SCBA method in other areas.

For more information, contact:
Carl Koopmans: +31 (0)20 525 1630 / c.koopmans(at)seo.nl

Government policy is focused on the protection of public interests. Assessments of government interventions in the market as viewed from a perspective of prosperity begin with an analysis of market to review the potential reasons for the interventions. Government interventions are, in principle, unnecessary when market forces yield favourable results. However, consideration can be given to intervention when markets fail, for example when external effects play a role, information is imbalanced, the market is dominated by one or more players or (excessively) high transaction charges are levied: the 'public interests are protected ' when the costs of correcting the market failures are lower than the resultant benefits. Government interventions can also made with a view to redistribution, or for reasons of paternalism - the government is of the opinion that the operation of the market is not in the public interest.

SEO Economic Research possesses comprehensive expertise in analyses of public interests: SEO Economic Research has developed a conceptual framework specifically for analyses of the division of roles between the market and authorities that has already been used in a wide range of policy fields and markets such as the housing, civil-law notary, legal profession, taxi, electricity, telecommunications, higher education and lottery markets.

For more information, contact: 
Barbara Baarsma: +31 (0)20 525 1652 / b.baarsma(at)seo.nl

Evaluations of the effects of policy tools or legislation begin with an inventory of the original policy targets and continue with the formulation of the policy theory, i.e. an analysis of the manner in which and the process with which the tool will actually achieve the required policy objective. This policy theory yields a number of hypotheses for the expected and required effects of the tool which are then tested to assess their validity.

The next step in the evaluation is the measurement of the actual effects as compared to a counterfactual (for example, the situation in the absence of the relevant policy tool). The specification of the counterfactual is of great importance, as it in part determines the magnitude of the effects. Advanced econometric analyses are often required gain a full insight into the effects.

SEO Economic Research has a wealth of experience in effect analyses: our analytical approach is of particular importance to the formulation of policy theory and specification of the counterfactual - and, moreover, we possess a great deal of knowledge of econometrics. 

For more information, contact: 
Barbara Baarsma: +31 (0)20 525 1652 / b.baarsma(at)seo.nl 
Lucy Kok: +31 (0)20 525 1630 / l.kok(at)seo.nl
Arjan Heyma: +31 (0)20 525 1656/ a.heyma(at)seo.nl

Surveys can play an important role in research: for example, in the absence of data on people's conduct and preferences (their revealed preferences) a survey may offer the solution. However, these surveys reveal solely the respondents' expressed, hypothetical conduct (their stated preferences). Surveys suffer from the disadvantage that that they may give cause to socially desirable or strategic answers and result in hypothetical statements rather than the 'truth'. As the truth is not known (when the revealed preferences are unavailable) it is impossible to determine the extent to which the use of surveys results in a bias. However, the risk of a bias can be minimised by formulating questionnaires which approach the actual situation as closely as possible and avoid prompts to give socially desirable or strategic answers.

SEO Economic Research is specialised in the use of high-quality survey methods of this nature, such as conjoint analyses (also referred to as as conjunct analysis). 

In conjoint analyses companies or households are presented a number of hypothetical situations, or scenarios, with combinations of attributes set at various levels. The respondents are requested to rank each scenario. These rankings can then be analysed to determine the preference for each attribute. Conjoint analysis offers the benefit that it can also be used for the valuation of goods without a price (such as environmental effects and innovation gains). When one attribute has a monetary value then a price tag can be determined for each of the other attributes.

SEO Economic Research has made frequent use of this survey method, for example for studies of power interruptions, job applicants, classical concerts, daily newspapers, the hospital sector, enforcement communications and noise nuisance, and nature and recreational areas.

For more information, contact: 
Ernest Berkhout: +31 (0)20 525 1657 / e.berkhout(at)seo.nl
Lucy Kok: +31 (0)20 525 1630 / l.kok(at)seo.nl 

The valuation of goods, and decisions on investments and their funding: these are classical, recurrent financing issues that affect us all. SEO Economic Research's financial research focuses on the interface of the public and private sectors and, in particular, on the financing issues that determine business and government decisions. This results in a broad range of potential studies, ranging from the regulation of the financial markets and the impact regulation has on businesses and investors to the valuation of products which the state supplies to the private sector, such as radio broadcasting licences, and from the question whether hospitals may distribute profits to the impact of the European CO2 emissions trading system and other methods that could promote investments in sustainable energy. 

For more information, contact: 
Marco Kerste: +31 (0)20 525 1962 / m.kerste(at)seo.nl

Market forces can be effective only in the presence of competition: competition, subject to specific conditions, lowers costs, reduces labour costs and increases innovation whilst maintaining a constant or improved quality. Markets with insufficient competition fail to maximise wealth. For this reason, Dutch and European competition legislation prohibits specific restrictive practices such as the formation of cartels or abuse of a dominant market position. Mergers are also regulated to prevent companies acquiring or enhancing a dominant market position. Since competitive effects can be assessed only after the identification of the market in which the effects are to be measured, all competition analyses begin with the delineation of the relevant market.

Competition is determined both by the conduct of the companies active in a market and the conduct of governments, and for this reason the European Commission reviews whether state aid to companies could distort competition or be detrimental to trade between member states. Competition can also be confronted with problems when publicly-owned companies are active in a market and enjoy benefits that are not available to private companies, or when the state places private companies a special position for the fulfilment of specific obligations and they are able to utilise the resultant benefits in other markets. 

SEO Economic Research has acquired a wealth of experience in the delineation of markets and review of competition issues of this nature.

For more information, contact: 
Bert Tieben: +31 (0)20 525 1644 / b.tieben(at)seo.nl 
Koert van Buiren: +31 (0)20 525 1650 / k.vanbuiren(at)seo.nl

Which measures are required to ensure that monopolists do not set their prices at excessive levels and that they perform efficiently? Which measures are required to ensure that companies that are not governed by market discipline do not neglect their customers? And how can companies exposed to insufficient competition be persuaded to release information on feasible cost savings? Economic regulation is of importance to nearly every sector in which market forces are limited, such as the energy markets and the telecommunications, public transport and care sectors, as well as the taxi market and animal waste destruction sector.

SEO Economic Research has carried out regulation studies in all these and other markets for a wide range of clients. The questions to be addressed by these studies can occasionally be wide-ranging, for example: 'Which form of regulation offers an appropriate balance between investment incentives, efficiency incentives and an acceptable distribution of profits'? In some instances the studies review crucial details, for example whether an existing regulation model offers scope for corrections for inflation that will be sufficient to recoup investments. The Researchers of the Competition & Regulation Cluster possess in-depth, up-to-date knowledge of regulation theory and interpret this theory in terms of specific analyses and recommendations. 

For more information, contact:
Bert Tieben: +31 (0)20 525 1644 / b.tieben(at)seo.nl

Unbridled market forces do not always yield acceptable results: it may then be necessary to impose requirements on the quality or conduct of parties wishing to enter the market, limit the number of parties in the market or impose requirements on ownership structures. 

Market-organisation research focuses on the requirements to be imposed on parties active in difficult markets: Will entry requirements suffice, or will a limitation to one or two parties be most effective? If so, how should the permits or concessions be allocated? Can private companies take part, or would it be preferable to restrict market access to publicly-owned companies?

SEO Economic Research has a wealth of experience in market-organisation issues in numerous markets including the energy, telecommunications, education, care, lottery and taxi markets.

For more information, contact: 
Bert Tieben: +31 (0)20 525 1644 / b.tieben(at)seo.nl
Koert van Buiren: +31 (0)20 525 1650 / k.vanbuiren(at)seo.nl 

Bringing private actions claiming compensation for harm caused by a cartel or abuse of a dominant position involves quantifying the damages. The first stage in the quantification of damages is determining the counterfactual scenario: what would have happened in a scenario where the infringement had not taken place? This involves a detailed economic study of the infringement and the parties affected. The second stage involves computing the difference between the counterfactual scenario (without infringement) and the factual scenario (in which the infringement took place), leading to a final damage value. 

SEO Economic Research has a wealth of expertise in the methods and models needed for successful damage calculation, covering both economic modelling and quantitative techniques. Our experience covers competition, industrial organisation, econometrics, finance, cost-benefit analysis of different scenarios and the quantification of effects. 

For more information, contact: 
Barbara Baarsma: +31 (0)20 525 1652 / b.baarsma(at)seo.nl 
Rob van der Noll: +31 (0)20 525 1687 / r.vandernoll(at)seo.nl 
Nicole Rosenboom: +31 (0)20 525 1670 / n.rosenboom(at)seo.nl 

In a properly functioning market private companies have the right incentives to meet consumers needs. For companies in the public or semi-public sector this is not the case. To promote efficiency and quality in the public sector a payment mechanism that gives the right incentives is required. SEO Economic Research has extensive experience in designing and evaluating payment mechanisms. Examples include the funding of specialists and general practitioners, the allocation of budgets to municipalities and the risk adjustment model for insurers. 

For more information, contact: 
Lucy Kok: +31 (0)20 525 1630 / l.kok(at)seo.nl 
Caren Tempelman: +31 (0)20 525 1684 / c.tempelman(at)seo.nl 

SEO carries out a financial stress test on behalf of various municipalities. In this stress test for municipalities SEO is building one specific financial model for each municipality to calculate the impact of external developments on municipal finances. These external developments or exogenous shocks - for example in economic growth, unemployment, interest rates, inflation, government budget cuts, price and volume of real estate - are modeled for an extreme, but plausible scenario.

The financial model that SEO builds and provides to the municipality is a flexible tool that municipalities, large or small, can use for doing their own calculations and it is appropriate for use in the future. The financial stress test can be used to assess the sustainability of municipal finances when they are under severe economic conditions. Upon request, SEO can also include an assessment of the financial maneuverability of the municipality and make recommendations to enhance this financial maneuverability.

For more information, contact:
Koert van Buiren: +31 (0)20 525 1650 / k.vanbuiren(at)seo.nl

The past twenty years, competition in the aviation increased. Passengers have more alternatives when it comes to selecting a departure airport, airline and airport transfer. The liberalization of international aviation markets, the growth of discounters, commercialization of airports and the transformation of former military airfields to civilian airports underlie this. SEO provides sound and innovative research into airport competition commissioned by governments, airports and airlines. How big is the market share of an airport in the catchment area and in the market for transfer passengers? What does investment in landside infrastructure mean for the market share of an airport in its catchment area? What are the economic effects of accession of a budget airline into a regional airport? And how does a fly tax affect the size of the catchment area?

A good international accessibility of cities and regions is high on the agenda of governments at home and abroad. An important part of this is the accessibility by air. Not only the availability of direct flights, but also the availability of indirect connections, and the quality of these compounds in terms of time, frequency and price it are of importance. SEO Economic Research has developed a broad range of instruments for network and connectivity analysis in international aviation. These instruments help SEO to answer questions like: How has the connectivity of an airport developed compared to the major competitors? What is the effect of a new alliance partner on the connectivity of a hub airport? How does the accession of a new airline on a route affect choice behavior of the passenger? And which new intercontinental routes provide the greatest welfare gains for consumers?

For more information, contact 
Guillaume Burghouwt: +31 (0)20 525 1642 / g.burghouwt(at)seo.nl

The energy sector is characterised by the opposing objectives of affordable, clean and reliable energy. SEO Economic Research's thorough, innovative research supports government and business policy decision-making within this triangle: How can the quality of grid management be rendered quantifiable? Which conditions are attached to grid regulations that promote sustainable energy supplies? Which tools can enable energy companies to make a cost-efficient contribution to energy conservation and sustainable energy targets? In recent years SEO Economic Research has made a contribution to the answers for these questions for a wide range of clients, from grid managers to the national government and from energy companies to supervisory authorities. 

One important regulatory issue within the context of grid management is the question whether regulation can succeed in finding an appropriate balance between investment incentives and cost efficiency incentives. SEO Economic Research employs its knowledge of regulation theory to carry out specific analyses of and provide specific advice on the design and optimisation of energy regulation. Our researchers possess up-to-date knowledge on the performance of the energy market throughout the chain, from production, transport and distribution right through to supply. One specific factor that needs to be taken into account is the growing significance of renewable energy which is confronting regulation and market organisation with new challenges. SEO Economic Research carries out social cost-benefit analyses to provide an insight into the integral effects - both economic and social effects - of changes in the energy market such as the growth of renewable energy, where analyses of scenarios for the future development of energy markets play a pivotal role.

For more information, contact: 
Bert Tieben: +31 (0)20 525 1644 / b.tieben(at)seo.nl 

The telecommunications sector has developed rapidly during the past twenty years, not only the regular telephony network and the TV/cable networks that compete with each other via a broad range of services, but also the third (glass fibre) network that is being installed at a continually increasing number of locations - as well with the ether, where developments are following each other rapidly.

Policy-makers and supervisory authorities are continually confronted with the challenge of keeping up to date with and ahead of these developments. Appropriate policy and regulation can promote progress whilst, conversely, failing policy can frustrate developments.

SEO Economic Research carries out research into a variety of facets of the telecommunications market for clients including the policy-maker - the Ministry of Economic Affairs, Agriculture & and Innovation and Opta supervisory authority - and market parties. In recent years SEO Economic Research has carried out research into issues including the social justification of public investments in broadband, competition between the landline networks, the optimum regulation of next generation networks, the value of GSM licenses, the accessibility of telecommunications to the disabled and the effects of the liberalisation of the frequency policy.

For more information, contact: 
Bert Tieben: +31 (0)20 525 1644 / b.tieben(at)seo.nl 

The economic significance of cultural and heritage assets has received a great deal of attention in recent years. However, the social value of cultural and heritage assets is not immediately apparent at the cash desk of cultural institutions and museums: their effect on the appeal of cities to high-potential residents and of the Netherlands to tourists is often more important. 

SEO Economic Research's activities within the Culture &Heritage area of expertise encompass assessments of the social value of various types of cultural and heritage assets, reviews of potential approaches to the enhancement of their social value and studies of the potential investments in the conservation of and improved access to heritage assets offer as a means of increasing society's wealth.

Copyright is of increasing importance to modern economies, but is also under great pressure due to digitalisation and the Internet. Exchanges of work without permission from the copyright owner can pose a threat to the maker's income whilst offering other makers and users new opportunities and wealth. When viewed from an economic perspective copyright can be regarded as a (temporary) monopoly for the distribution and performance of the protected work. Any exceptions to this right need to achieve an appropriate equilibrium with the public interest.

SEO Economic Research carries out many studies of the economic aspects of copyright, including studies of the economic and cultural consequences of file sharing, the positions and interests of the makers and performing artists, as well as the scope of the economic sectors that are dependent on copyright or, conversely, on exceptions to copyright.