Recent economic reforms and the increased role of the private sector in transport infrastructure have emphasised the need consider effective economic forms of regulation to facilitate competitive outcomes for the best interests of passengers.
Taking airports as an example, an airport may or may not have significant market power or may have market power over part but not all of its passenger-base. There is a need first to answer whether a given airport needs any form of economic regulation. If it does, there remain many possible regulatory options that could be applied from price monitoring to a fully-blown price cap regime.
Our expertise covers the whole range of regulatory economics. This includes market power assessment, designing regulatory incentives, price reviews and charging structures, efficiency benchmarking, asset valuation, cost of capital assessment, and demand forecasting.
Frontier combines an understanding of the regulatory structures and a sound knowledge of the transport sectors. We use advanced quantitative techniques and economic modelling. We have advised governments, transport operators and regulators across the world.
Our clients include operators, regulators and governments. We help regulators devise and refine mechanisms to make markets work, to reward efficient investment, and to incentivise operators to serve customers better. We also help regulated companies in established regimes to navigate regulatory reviews and investigations.
Read more on our regulation work.