BASF Sponsors ZEW Research Award – Joao Vareda Receives in Mannheim the Heinz König Young Scholar Award Endowed With 5,000 Euros

The Centre for European Economic Research (ZEW) in Mannheim has awarded the Heinz König Young Scholar Award for the fourth time. This year the Portuguese Joao Vareda received the research award. Mr. Vareda is an economist currently finishing his Ph.D in economics at the New University of Lisbon (Universidade Nova). He received the Heinz König Young Scholar Award for a paper on how the obligation of former monopolists in telecommunication markets to grant their competitors access to the network infrastructure affects the former monopolists’ investment behaviour.

The annual ZEW award is endowed with 5,000 Euros and an invitation for a research stay at the ZEW. This year’s prize is sponsored by BASF.

In particular, Mr. Vareda analyzes whether in telecommunication markets the obligation to grant competitors access to their own network affects the investments (in quality improvements and in cost reductions) of former monopolists. For this purpose, he developed a model that describes how competition takes place in a telecommunication market between a formerly established monopolist and a potential competitor. Mr. Vareda shows that a reduction in the price for the competitor to access the network reduces the incentives for the former monopolist to invest in quality improvements. On the other hand, it increases its incentives to invest in cost reductions. ZEW’s president, Prof. Dr. Dr. h.c. mult. Wolfgang Franz, awarded the prize on behalf of the sponsor and honoured Mr. Vareda’s paper in his speech: "with the paper presented at this year’s Summer Workshop, Joao Vareda contributes significantly to the current debate about the effects of economic policies to improve competition and investment incentives in telecommunication markets. This issue also concerns Germany notably."

The Heinz König Young Scholar Award, named after ZEW’s late founding director, Prof. Dr. Dr. h.c. Heinz König, awards excellent papers by young economists. The ZEW does not want to add another prize to the wide range of awards for established scientists but – following Heinz König’s tradition – prefers the sponsorship of young scholars.

The Heinz König Young Scholar Award is always awarded at ZEW’s Summer Workshop that takes place in Mannheim every year. The Summer Workshop’s aim is to provide further qualification for young economists. A wide range of scientific papers are submitted and the best are chosen in a rigorous selection process. About 12 to 16 young scientist from Germany and abroad are invited to Mannheim. During the Workshop, they can discuss their research with other young scientists as well as with invited established researchers. The best submission is awarded with the Heinz König Young Scholar Award.

Contact

Dr. Irene Bertschek, Phone: +49/621/1235-178, E-mail: bertschek@zew.de