Contracts help define the relationships between buyers, sellers, collaborators, partners, competitors, governments and regulators. Our use of economics provides insights for understanding when they will and won’t work.
Our contract design and evaluation work
Contract design is complex. It is usually impossible to foresee and specify what the parties will do in every circumstance, some parties may have better information than others, and all contracts impose incentives: explicit or implicit, intentional or unintentional.
For Frontier, contract design and evaluation starts by analysing the fundamental economics of the markets and those involved. It then focuses on the economics of the transaction: information, incentives and capabilities. Finally, it assesses the impact on expected payoffs and the allocation of risk and reward.
By focusing on the fundamentals, we help clients with gaining competitive advantage, commercial contracting disputes, transfer pricing and regulatory contract design.
Our experience in regulation, dispute support and competition policy means that, in addition to our expertise in economics and the standard toolkits of financial analysis, we can often draw on detailed knowledge in a wide range of sectors.