The New Zealand Institute for the Study of Competition and Regulation · ISCR
Permanent URI for this collectionhttps://ir.wgtn.ac.nz/handle/123456789/30540
Information on the Institute for the Study of Competition and Regulation
Founded in 1998 and closed in 2015, the Institute for the Study of Competition and Regulation (ISCR) was an independent, nonprofit research institute located at Victoria University of Wellington's Pipitea Campus. Funding of its activities was provided by members, project work, and research grants. The primary objectives of ISCR research were to assist in understanding:
- how markets and organisations operate
- how markets provide appropriate incentives and disciplines for organisations
- the limitations of markets, and the role of regulation in addressing these limitations
- the importance of property rights and institutional structures in facilitating effectiveness of markets, organisations, competition, and regulation in New Zealand
Browse
Recent Submissions
Item Open Access Profit Definitions Galore: the case of electricity' by Lew Evans(Te Herenga Waka—Victoria University of Wellington, 2013) Evans, LewisThis Current Comment was posted by Lew Evans. 'Profit' and 'cost' in electricity have multiple meanings that are shaping the electricity debate.This note sets out the meanings and origins of four profit measures referred to: accounting, economic, monopoly and Wolak profits.Item Open Access A Proposed Pathway towards future reform of New Zealand’s de minimis threshold(Te Herenga Waka—Victoria University of Wellington, 2013) Steel, Will; Daglish, Toby; Marriott, Lisa; Gemmell, Norman; Howell, BronwynImports into New Zealand are tax free if the duty and GST payable is less than $60. This has resulted in an effective value threshold of between $226 and $399, significantly higher than many of our trading partners. We examine other nations' thresholds and border practices with a view to whether NZ should lower its de minimis threshold. We further examine other options, strongly recommending changing to a minimum customs value definition. However, we do not support collection of duties/GST through financial intermediaries, instead proposing the establishment of a multilateral system. Finally, we outline shortcomings in Customs’ cost - benefit analysis and accordingly present three alternative methodologies for future assessment of the de minimis threshold.Item Open Access Structural Separation and Technological Diffusion(Te Herenga Waka—Victoria University of Wellington, 2014) Howell, BronwynVertical separation of upstream network operations from downstream retail activities, as the most extreme form of access regulation,has long been considered a legitimate regulatory remedy against use of market powerin upstream infrastructure markets to engage inprice-and non-price discrimination to foreclose competition in downstream retail markets. However, the remedy is increasingly being mandated for new networks, sometimes before any investment has been made.This paper uses theories of General Purpose Technologies and regulatory economics to consider how vertical separation–compared to both access regulation and no regulation-poses challenges to the ability to maximise scale economies at the early stage of a network life-cycle. This suggests greater caution in its use at this stage compared to middle and mature phases of the life-cycle. The theories are examined via case studies of two markets where vertical separation has been mandated for Fibre-to-the-Home networks–Australia and New Zealand–and one where ithas not–the Netherlands. The case studies suggest that mandatory separation imposes additional constraints on the network owner’s ability to achieve scale economies arising from rapid uptake of a new network relative to access regulation when it fails to replicate amongst any retailers the vertically-integrated operator’s incentives to engage in aggressive early-stage marketing. Analysisal so suggests that contractual limitations may have greater effect onthe ability to achieve scale economies than structural impositions and ownership limitationsItem Open Access Cooperatives in New Zealand: The Particular Case of Dairy presented by Lew Evans(Te Herenga Waka—Victoria University of Wellington, 2012) Evans, LewLew Evans presented this seminar on 3 September to ISCR Members and a delegation of 30 Presidents and Directors of cooperatives of the Brazilian State of Parana drawn mainly from the agricultural and credit sectors,Item Open Access Cost Shifting the single buyer model with price discrimination' by Lew Evans(Te Herenga Waka—Victoria University of Wellington, 2013) Evans, LewisThis Current Comment was posted by Lew Evans and analyses the current proposal for a single buyer and price discrimination.Item Open Access Lew Evans presents seminar to Brazilian Co-op Delagates on 3 Sept 2012 'The Position and Evolution of Cooperative Firms Application to NZ Dairy'(Te Herenga Waka—Victoria University of Wellington, 2012) Evans, LewThis seminar was presented to ISCR members and a visiting delegation of 30 Presidents and Directors of cooperatives of the Brazilian State of Parana drawn mainly from the agricultural and credit sectors.Item Open Access Regulating Gasoline Prices: Experimental Evidence' presented by Dr Prof Justus Haucap on 24 Jan 2013(Te Herenga Waka—Victoria University of Wellington, 2013) Haucap, JustusIf retail gasoline prices are to be regulated, is it better to allow only one price increase per day (while price cuts are always possible) as in Austria, impose a maximum retailer mark-up as in Luxembourg , or allow only one daily price change (either up or down) as in Western Australia? Indeed, is price regulation the best way to increase consumer welfare in retail gasoline markets characterised by oligopoly market structures, frequent interactions, highly transparent prices, rather inelastic demand and collusive behaviour? A recent German inquiry backed suspicions of tacit collusion and suggested adoption of regulatory price rules for gas stations similar to those implemented in Austria, parts of Australia, Luxembourg or parts of Canada. Whilst intuition suggests the proposed rules will raise consumer welfare, theoretical evidence is mixed and empirical evidence rare. In this seminar, Justus Haucap discusses evidence obtained using an experimental gasoline market in a laboratory experiment which suggests that these rules tend to decrease rather than increase consumer welfare. Whilst no rule tends to induce lower retail prices, some rules are less harmful than others.Item Open Access The Allocation of Water by the New Zealand Electricity Market: effects of particular climatic changes' presented by Lew Evans for MOTU on 8 Nov at BP House, Wellington(Te Herenga Waka—Victoria University of Wellington, 2012) Evans, LewThis seminar shows the way the electricity market utilises river flows and the effect of changes in characteristics of these flows on the production and consumption of electricity. It shows how the reservoirs and non-hydro generation are utilised in generation decisions, to shift water use over time to meet seasonal and daily peak consumer demands. It explains how characteristics of the river flow and changes in them are translated into longer term, hedge and retail prices.Item Open Access Water is valuable: the allocation of water and other resources in the New Zealand electricity market(Te Herenga Waka—Victoria University of Wellington, 2013) Tam, Diana; Evans, LewisThis monograph investigates the role of the electricity market in the allocation of water and other resources used as inputs into electricity generation. We base our observations on the outputs of an original electricity spot market model designed to mimic the New Zealand electricity market. The model explains the role of water storage and the associated value of water in decision-making by generation companies. It also explains how water is allocated between on and off-peak periods and across seasons.Item Open Access An Exploration of School Quality, House Prices and Geographical Location in Wellington, New Zealand(Te Herenga Waka—Victoria University of Wellington, 2014) Daglish, Toby; De Roiste, MaireadISCR and Victoria University of Wellington undertook a project with Sarah Crilly, a Higher Diploma of Data Science and Analytics student at the Cork Institute of Technology, Ireland in a project investigating school quality measures and house prices in Wellington, New Zealand. This project was presented at the Central Statistics Office, the Irish equivalent to Statistics New Zealand, at a Data Science seminar on the 31st of April 2014. This project investigates available school measures, their use as measures of school quality and explores whether school quality is associated with house prices in Wellington, New Zealand. Geographical Information Science and Systems (GIS) is used as a descriptive and analytic tool in tandem with multiple linear regression and k-means clustering. It is found that a socioeconomic measure known as school decile, student ethnicity and assessment results are likely school quality measures. The association between school quality measures and house prices is found to be statistically significant but not strong.Item Open Access Potential Effects of New Zealand's Policy on Next Generation High-Speed Access Networks(Te Herenga Waka—Victoria University of Wellington, 2014) Winkler, KayNew Zealands strategy to deploy ultra-fast next generation access networks (NGA) on the basis of fibre to the home (FTTH) to the majority of the population by 2019 involves specific public private partnerships for dedicated roll-out areas that are supported with substantial financial aid by the Crown. This article explores in which way this strategy can be effective and whether it is able to accelerate consumer demand for NGA. Several empirical studies relating to the deployment and uptake of broadband technology consistently reveal factors which are decisive for the diffusion of broadband technologies in developed countries. From the supply-side perspective, the regulatory environment, associated incentives to deploy new infrastructure, and government stimuli can be seen as important determinants. However, the diffusion of a new technology in a given market requires consumer acceptance. The consumer uptake of ultra-fast broadband (UFB) access will depend on the increase in speed in relation to the existing access technology, and the existence of applications requiring this increase. Taking these factors into account, some potential problems with New Zealands roll-out plan can be identified. It seems conceivable that the driving factor for fast broadband uptake in New Zealand is, under the current set of applications, the migration from low bandwidth broadband to higher bandwidths required for video streaming, but not necessarily to ultra-fast broadband. In that sense, a diminishing marginal return of speed may be assumed. Further, the regulatory environment might cause adverse effects for competing broadband networks that are not subsidized, such as the recently rolled out VDSL network and 4G mobile networks. Moreover, the incentives of retail service providers to offer fibre based internet products are not clear cut. Because of vertical separation they are not invested in network deployment. An empirical analysis of recent UFB uptake data could show whether these assumptions are valid.Item Open Access Broadband Regulation & Government Investment in Ultrafast Fibre Broadband Networks: Evidence from New Zealand(Te Herenga Waka—Victoria University of Wellington, 2013) Howell, BronwynHowell, Bronwyn recently attended the 2013 European Regional Conference of the International Telecommunications Society, held in Florence, Italy from 20-23 October.Item Open Access Telecommunications in New Zealand: Regulating for Infrastructure Competition Reality, 12 July 2013(Te Herenga Waka—Victoria University of Wellington, 2013) Howell, Bronwyn; Haucap, Justus; Nicholls, Rob; Glass, Hayden; Abbott, ChrisIn February, Communications minister Amy Adams brought forward the planned review of the regulatory arrangements for New Zealand's telecommunications sector. The move was prompted by emerging tensions between the Commerce Commission's pursuit of its legislated objective to promote competition in the retail market for broadband connections to Chorus' copper network, and the government's objectives for rollout and take-up of its subsidised Ultra-Fast Broadband network. The regulatory review coincides with a review of the Telecommunications Service Obligation arrangements enabling certain telecommunications services to be available and affordable. The Ministry of Business, Innovation and Employment will shortly release discussion documents supporting these two reviews. ISCR invited telecommunications industry, policy, regulatory and academic stakeholders to participate in a forum to share international experience and stimulate debate and discussion to inform the review of New Zealand's telecommunications regulatory framework and Telecommunications Service Obligations currently taking place under Sections 101A nad 157AA of the Telecommunications Act (2001).Item Open Access Fit for Purpose? Examining the Current State of Broadband Regulation in NZ', presented by Howell, Bronwyn on 6 March 2013(Te Herenga Waka—Victoria University of Wellington, 2013) Howell, BronwynPresentation of Fit For Purpose? Examining the Current State of Broadband Regulation in New ZealandItem Open Access If Electricity Liberalisation Is Working, Then Why Do So Many People Hate It?', presented by Prof James Bushnell 7 August 2013(Te Herenga Waka—Victoria University of Wellington, 2013) Bushnell, JamesAttitudes towards the proper form of organisation and regulation of the electricity sector have shifted several times over the past two decades. These shifts include a wave of liberalisation that encompassed many regions of the world, and more recently a backlash against many of these policies. Drawing largely from the U.S. experience, this talk discusses the political economy of electricity restructuring and explores the economic arguments for and against liberalisation.Item Open Access How to get from Avalon to Berhampore: commuting and car ownership decisions in Wellington, NZ' presented by Toby Daglish on 15 May 2013(Te Herenga Waka—Victoria University of Wellington, 2013) Daglish, TobyCommuting decisions have major implications for government departments, city and regional councils, car dealers, petrol stations, and household pocket books. We use the NZ Household Travel Survey to explore the decisions made by households in Wellington regarding commuting mode (busing, training, driving, cycling or walking) and intensity of car ownership. Who are the people sitting bumper to bumper on the motorway, and who are the coves in sneakers walking down the hills each morning?Item Open Access Public-Private Partnerships: Building Infrastructure for the Future, 29 August 2013(Te Herenga Waka—Victoria University of Wellington, 2013) The New Zealand Institute for the Study of Competition and RegulationThe New Zealand Institute for the Study of Competition and Regulation (ISCR) hosted a one day Conference and Executive Development workshops bringing together the latest research and experience of Public-Private Partnerships from the Academic, Policy and Industry perspectives. This event took place in Wellington, New Zealand from 27-29 August 2013. The Hon. Bill English, Deputy Prime Minister opened the one day Conference on 29 August, with Keynote Speaker Prof Ronald Fischer (University of Chile) leading the Workshops and the Conference.Item Open Access The Administration of New Zealand Irrigation: History and Analysis(Te Herenga Waka—Victoria University of Wellington, 2007) Le Prou, ReneThe sharply contrasting ways in which community irrigation schemes in New Zealand were developed and managed before and after 1990 illustrate the operation of decentralised vis-à-vis centralised (planning) industry governance systems. While the evidence is not easily quantifiable, what evidence there is suggests that the shift to a decentralised system that took place about 1990 coincides with improved irrigation efficiency. NZ irrigation thus provides an example of the global move away from centrally planned systems and illustrates the important elements of well functioning decentralised systems. Today, farmer owned companies - rather than State owned - are responsible and accountable for scheme development and management. In combination with the RMA - which enables a decentralised approach to resource use - this has facilitated innovation in scheme design, more efficient management, and better water use. It has also revealed more precisely the value of water in irrigation.Item Open Access Fit for Purpose? Examining the Current State of Broadband Regulation in NZ', presented by Howell, Bronwyn on 8 May 2013(Te Herenga Waka—Victoria University of Wellington, 2013) Howell, BronwynThis seminar, presented at Minter Ellison Rudd Watts, Auckland is a repeat of Howell, Bronwyns seminar presented on 6 March in Wellington.Item Open Access NZ Power - Mainstream or Mad?(Te Herenga Waka—Victoria University of Wellington, 2013) Gerritsen, BenThe Labour Party and the Greens have made electricity sector restructuring a key plank of their 2014 election campaign. Their proposal to replace New Zealand's wholesale electricity market with a central buyer (known as 'NZ Power') has been variously described as 'common in many jurisdictions overseas' and 'barking mad'. Surely it can't be both? This session explores the lessons that international experience holds for NZ Power - and what the experience tells us about the merits ofthe NZ Power policy.
