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The methodological and applied work on micro-econometric demand analysis outlined here has been repeatedly used by the UK Competition Commission (since 2002) and the Co-operation & Competition Panel (now Monitor) of the UK Department of Health (since 2009) in their respective competition analyses, and by the Hong Kong Consumer Council in its Public Estate Supermarket Study (since 2011). It contributed to the European Commission White Paper on the quantification of antitrust damages (2010), underpinning some of the econometric methodology proposed there to assess cartel damages in EU Courts. Beckert's work in the area of micro-econometric demand analysis connects micro-economic demand theory with various econometric methodologies to assess demand-side substitution in the presence of taste heterogeneity. His research is disseminated through articles in peer-reviewed academic journals, policy articles, and through consultation by antitrust authorities, think tanks and economic consultancies.
From the 1990s UCL Economics invested in the capacity to conduct fundamental and applied research in behavioural and experimental economics. This was the basis for the research which provided the evidence base for the Office of Fair Trading to identify and act upon misleading pricing practices, particularly `drip pricing', in 2010. As a result, 12 major airlines announced that they would include debit card charges in their headline prices, and government announced that the EU-wide Consumer Rights Directive would be implemented a year earlier than it was due to go into effect.
Prof. Andrew Fearne's consumer insight research project influenced marketing practice in almost 400 farming and small food businesses, while helping eight food industry associations and regional development agencies meet their remits. It also supported local supplier initiatives at the UK's largest supermarket, Tesco. A recent participant survey showed that 89% of farmers and small food producers who engaged with the project found that the consumer insight was either `quite' or `extremely useful'. Meanwhile, the project helped Tesco grow its sales of local food and drink from £0.5 billion (2005) to over £1 billion (2012) against average retail sales growth of less than 5% per year over the same period (Office of National Statistics).
Research in the Centre for Competition and Regulatory Policy (CCRP) at City University London has influenced extensively UK competition policy and continues to do so. The research has influenced directly the Department for Business, Innovation and Skills (BIS) in the development of the new Enterprise and Regulatory Reform Act 2013 (ERR Act). A process of engagement including two Round Tables chaired by Professor John Cubbin and a corresponding documentary submission, shaped the way in which the ERR Act gives enhanced powers to a unified competition authority, the Competition and Markets Authority (CMA). The research impacted on the eventual form of this new institution, especially in its independence in merger and market inquiries between Phase 1 (Could there be a problem?) and Phase 2 (What do we do about it?), which were previously carried out by the Office of Fair Trading and the Competition Commission respectively. The Centre's input into the Act has also been central in influencing how the CMA will retain and enhance the role of members of the panel of independent "external" experts.
Professor Michael Waterson demonstrated how two consumer activities — search and switching — are necessary if competition is to benefit consumers. He showed how search and switching costs inhibit the competitive process; highlighted how firms increase these costs in retail, banking, insurance and energy markets, and recommended government measures to empower consumers. Regulators around the world have used Waterson's research to enhance the consumer benefits from competition. Professor Gregory Crawford also analysed switching costs, estimating the costs of automatically renewable contracts in the UK telephone market. Based on this analysis, Ofcom banned rollover contracts for all residential and small business customers of voice telephone and broadband services, reducing households' and small businesses' switching costs by at least £340 million/year.
Competition authorities (CAs) such as the Office for Fair Trading (OFT) are obliged to evaluate how their activities have benefited consumers. On the basis of his prior research in this area, Stephen Davies was invited to produce a public evaluation of methods used by the OFT to estimate the direct consumer benefits resulting from its competition enforcement. This is an obligation to HM Treasury and influences the allocation of resources to, and within, OFT. His published report (2010) has led to changes in OFT's methodologies and has been influential on CAs internationally. It also feeds into how OFT conducts future interventions.
A body of research has informed government bodies, policy makers and other agencies on consumer interactions with retail financial services markets. Specifically, it has informed formulation of new policies in the area of simple products and banking standards that are now being put into effect as new policy initiatives.
The impact detailed here has been on policy development and implementation in the area of consumers and financial services. The body of academic research has gained traction and credibility with relevant stakeholders due to academic endorsement and wide scale dissemination efforts. This has allowed researchers a significant input into consultation processes, campaigns and a parliamentary commission. Such inputs have helped formulation of new policies in the area of simple products and banking standards that are now being operationalized as new policy initiatives. Thus, a direct chain of impact exists between the initial research and the final outcomes, which influences numerous financial services decision makers and banking customers.
Loughborough University research into town centre consumer perceptions and behaviour has changed the awareness, attitudes and approaches of industry bodies, policymakers and retailers with regard to driving evidence-based strategies for town centre recovery. Nationally, it has informed industry bodies such as the British Retail Consortium and the Association of Town and City Management of the value of consumer perceptions for developing and evaluating town centre strategy. Locally, it formed a key component of the evidence-based advice that helped Loughborough Town Centre win a place in the government-commissioned Portas Pilot project to rejuvenate Britain's High Streets. High Street giants such as Boots have also acknowledged its importance.
Regulating telecommunications has been difficult for policy-makers, who must balance freedom for business operation with fairness and value for consumers. Termination rates — the cost of ending phone calls using other networks — have been particularly contentious.
Professor Valletti's work helped regulators, including Ofcom, to model the processes involved and thereby improve regulatory pricing guidelines.
By developing a new theory of regulation — how dynamic incentives price regulation — his research has influenced policy in both UK and international telecommunications markets.