A major acquisition, a state aid measure, a regulatory intervention or an anti-competitive practice can influence prices, investments, consumer choice and the development of entire sectors of the economy. While such developments often make headlines, the economic mechanisms and incentives that determine their impact often remain unknown to the wider public.

The assessment of business transactions, mergers and acquisitions, competition investigations, state aid measures and regulatory interventions often requires robust, independent economic analysis. This is a highly-specialised field where economics, law and public policy intersect, informing decision-making by businesses, investors, regulatory authorities and institutions.

Since 2013, Trojan Economics has provided specialised economic advisory services to businesses and organisations on competition, mergers and acquisitions, state aid and market regulation. Throughout its journey, the firm has advised companies and organisations involved in significant and complex cases examined in Cyprus.

The company works closely with law firms, professional associations, public organisations and regulatory authorities. At the same time, it specialises in the economic aspects of complex legal matters, where data analysis, quantitative evidence and economic theory are crucial to evaluating factual circumstances and developing well-substantiated arguments.

At a time of profound economic, technological and geopolitical change, issues such as competitiveness, investment, the transition to a new energy model, digital markets and the regulation of critical sectors are becoming increasingly significant. The functioning of a market depends not only on its size or the number of participating firms, but also on the rules that govern it, the incentives they create and the ease with which new entrants can compete.

Dr Panayiotis Agisilaou, Founder and Managing Director of Trojan Economics elaborated on the value of economic analysis.

“Many of the decisions that affect businesses, investments and the functioning of markets are primarily discussed in terms of their legal, political or commercial dimensions. However, in all these cases, economic mechanisms and incentives often determine the outcome,” he noted. “Economic analysis helps us understand how a market operates in practice, the constraints businesses face and the real consequences of a decision. Through our articles and interventions, we aim to explain this economic dimension in an accessible way and demonstrate how it affects businesses, markets and the economy.”

Over the coming months, Trojan Economics will develop a series of articles, analyses and expert commentaries focusing on competition policy, merger control, state aid, market regulation and public policy.

Topics will include the impact of business transactions and regulatory decisions, the functioning of energy and digital markets, barriers to entry and the ways in which economic incentives influence prices, investment, innovation and consumer choice.

Through this initiative, Trojan Economics seeks to bring the economic dimension of issues affecting market dynamics closer to the public, fostering a better understanding of the developments shaping the business environment and the Cypriot economy.