Methodologies for Market Studies

Abstract

Market studies are a widely-used tool for competition authorities to develop a better understanding of competitive conditions within one or more sectors. They involve a range of different objectives, and their approach varies significantly according to the specific sector or issue being considered. This paper identifies the various information collection and analytical methodologies used in market studies, as well as some common considerations regarding their selection and application. Selecting methodologies for information gathering and analysis in a market study is an iterative process, and should be guided by a set of initial hypotheses as well as a project plan. Information gathering often starts with the compilation of background research, which is then supplemented with stakeholder interviews, targeted information requests, surveys and other information. Analytical methodologies applied by market study teams can be guided by an initial mapping of the market structure, which can be followed by pricing analyses, including price comparisons and profitability analyses. Other quantitative and qualitative analyses have focused on the dynamics between suppliers in a market, as well as the characteristics and behaviour of consumers. Market studies can also identify regulatory barriers to competition using competition assessment methodologies.