There is evidence that machine learning (ML) can improve the screening of risky borrowers, but the empirical literature gives diverse answers as to the impact of ML on credit markets. We provide a model in which traditional banks compete with fintech (innovative) banks that screen borrowers...

The paper outlines various measures of profitability and considers what role they can play in competition law. We argue that profitability measures can provide a good answer to the wrong question and a much less good answer to the question we really want to answer. Using appropriate definitions...

This paper focuses on the application and interpretation of measures of rate of return for competition law. Amongst other results, we analyse how outsourcing and similar arrangements impact the rate of profitability and show that the measurement is more volatile the greater the rate of profit...

This paper focuses on the application and interpretation of measures of rate of return for competition law. Amongst other results we analyse how outsourcing and similar arrangements impact on the rate of profitability and show that the measurement is more volatile the greater the rate of profit,...

It is crucial to understand the impact of changes in regulation on market risk but there is no literature showing how risk responds to expected changes in regulation that are specifically designed to change risk. This paper fills this gap by providing a detailed study of one such case. Using a...

Privatizations are commonly associated with underpricing and undervaluation. Underpricing has received significant attention in the literature, but there is no equivalent literature that explains undervaluation. This paper provides a theoretical model of why regulated privatized assets are prone...

Privatised utilities are typically characterised by both undervaluation and underpricing. When faced with this problem, regulators have tended to employ a market-value approach to determine the regulatory asset base. This paper analyses this approach and shows that it magnifies the impact of any...