Dual Measures of Monopoly and Monopsony Power: An Application to Regulated Electric Utilities
AbstractThe inefficiency from monopoly pricing, monopsony pricing, and other institutional factors should be simultaneously estimated to avoid misspecification. Estimation of a behavioral profit function, where input and output shadow prices may diverge from their market values, allows unbiased simultaneous estimation of inefficiencies if its normalized form is employed. In an application to electric utilities consuming western coal, the authors cannot reject the hypothesis that utilities act as price-takers in output markets and find weak and statistically insignificant evidence of fuel-adjustment-clause bias. Strong evidence is found of monopsony behavior in the market for western coal and its transportation. Copyright 1989 by MIT Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by MIT Press in its journal Review of Economics & Statistics.
Volume (Year): 71 (1989)
Issue (Month): 2 (May)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Sjöström, Magnus, 2004. "Factor Demand and Market Power," UmeÃ¥ Economic Studies 633, Umeå University, Department of Economics.
- Brännlund, Runar & Lundgren, Tommy, 2001.
"A Dynamic Analysis of Interfuel Substitution for Swedish Heating Plants,"
UmeÃ¥ Economic Studies
550, Umeå University, Department of Economics.
- Brannlund, Runar & Lundgren, Tommy, 2004. "A dynamic analysis of interfuel substitution for Swedish heating plants," Energy Economics, Elsevier, vol. 26(6), pages 961-976, November.
- Sjöström, Magnus, 2004. "Biofuels and Market Power - The Case of Swedish District Heating Plants," UmeÃ¥ Economic Studies 634, Umeå University, Department of Economics.
- Curtis Carlson & Dallas Burtraw & Maureen Cropper & Karen L. Palmer, 2000.
"Sulfur Dioxide Control by Electric Utilities: What Are the Gains from Trade?,"
Journal of Political Economy,
University of Chicago Press, vol. 108(6), pages 1292-1326, December.
- Carlson, Curtis & Burtraw, Dallas & Cropper, Maureen & Palmer, Karen L., 1998. "Sulfur dioxide control by electric utilities : what are the gains from trade?," Policy Research Working Paper Series 1966, The World Bank.
- Burtraw, Dallas & Palmer, Karen & Cropper, Maureen & Carlson, Curtis, 1998. "Sulfur-Dioxide Control By Electric Utilities: What Are the Gains from Trade?," Discussion Papers dp-98-44-rev, Resources For the Future.
- Kellie Curry Raper & H. Alan Love & C. Richard Shumway, 2000. "Determining market power exertion between buyers and sellers," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(3), pages 225-252.
- Lynk, E. L., 1995. "Testing efficiency in intermediate regulated industries," Economics Letters, Elsevier, vol. 49(3), pages 323-328, September.
- Ronchi, Loraine, 2006. "Fairtrade and market failures in agricultural commodity markets," Policy Research Working Paper Series 4011, The World Bank.
- Zhiqiang Liu, 2001. "Efficiency and Firm Ownership: Some New Evidence," Review of Industrial Organization, Springer, vol. 19(4), pages 481-496, December.
- Guido Cella & Giovanni Pica, 2001. "Inefficiency Spillovers in Five OECD Countries: An Interindustry Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 13(4), pages 405-416.
- Brännlund, Runar & Marklund, Per-Olov & Sjöström, Magnus, 2001. "Evaluating market efficiency without price data. The Swedish market for wood fuel," UmeÃ¥ Economic Studies 576, Umeå University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.