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Estimating Effective Concentration in Deregulated Wholesale Electricity Markets

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Author Info
Richard Schmalensee
Bennett W. Golub

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Abstract

To inform debates about deregulation of wholesale markets for electricity, we estimate effective concentration in those markets in the contiguous United States in 1978. Our estimates are based on simulated oligopolistic equilibria, the characteristics of which are derived from a new and comprehensive data base. We find, among other things, that effective concentration is highly dependent on the adequacy of transmission capacity in each area, about which usable data are unavailable, and on the behavior of the existing public enterprises in this industry. Policy implications of our findings are discussed.

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File URL: http://links.jstor.org/sici?sici=0741-6261%28198421%2915%3A1%3C12%3AEECIDW%3E2.0.CO%3B2-H&origin=repec
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Publisher Info
Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 15 (1984)
Issue (Month): 1 (Spring)
Pages: 12-26
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Handle: RePEc:rje:randje:v:15:y:1984:i:spring:p:12-26

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Web page: http://www.rje.org

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  1. James B. Bushnell & Erin T. Mansur & Celeste Saravia, 2007. "Vertical Arrangements, Market Structure, and Competition An Analysis of Restructured U.S. Electricity Markets," NBER Working Papers 13507, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Kühn, Kai-Uwe, 2006. "How Market Fragmentation Can Facilitate Collusion," CEPR Discussion Papers 5948, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Janssen, Matthias & Wobben, Magnus, 2008. "Electricity Pricing and Market Power - Evidence from Germany," MPRA Paper 11400, University Library of Munich, Germany. [Downloadable!]
  4. Severin Borenstein & James Bushnell, 1998. "An Empirical Analysis of the Potential for Market Power in California's Electricity Industry," NBER Working Papers 6463, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Twomey, P. & Green, R. & Neuhoff, K. & Newbery, D., 2005. "A Review of the Monitoring of Market Power The Possible Roles of TSOs in Monitoring for Market Power Issues in Congested Transmission Systems," Cambridge Working Papers in Economics 0504, Faculty of Economics, University of Cambridge. [Downloadable!]
    Other versions:
  6. Niamh McCarthy, 2005. "Market Size, Market Structure & Market Power in the Irish Electricity Industry," Papers WP168, Economic and Social Research Institute (ESRI). [Downloadable!]
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