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Screening for partial collusion in retail electricity markets

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  • Garcia Pires, Armando J.
  • Skjeret, Frode

Abstract

Starting from a theoretical model of coalition formation, we analyse which price markers are more adequate to identify clues of partial cartels. Based on the theoretical model, we argue that measures of the shape of a distribution (such as kurtosis and skewness) can complement centrality measures (such as the mean and the dispersion of the distribution of prices) to screen for potential partial cartels. We apply these price markers to price data from the Norwegian retail electricity market.

Suggested Citation

  • Garcia Pires, Armando J. & Skjeret, Frode, 2023. "Screening for partial collusion in retail electricity markets," Energy Economics, Elsevier, vol. 117(C).
    • Handle: RePEc:eee:eneeco:v:117:y:2023:i:c:s0140988322006028
    DOI: 10.1016/j.eneco.2022.106473
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    Cited by:

    1. Bovin, Andreas & Bos, Iwan, 2023. "Market Shares as Collusive Marker: Evidence from the European Truck Industry," Research Memorandum 011, Maastricht University, Graduate School of Business and Economics (GSBE).

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    More about this item

    Keywords

    Collusion; Partial cartels; Screening methods; Price fixing;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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