Advanced Search
MyIDEAS: Login

Production intermittence in sport markets

Contents:

Author Info

  • Augusto Ruperez Micola
  • Albert Banal-Estanol

    (LSF)

Abstract

This paper analyses the influence of production intermittence on spot markets. We use both game theory and an adaptation of the Camerer and Ho (1999) behavioural model. Controlling for costs, we find that intermittent technologies yield lower prices when incumbents have individual market power, but are higher when they do not have it. This happens both when firms are risk-neutral and risk-averse, and also under different intermittence and ownership configurations.Replacing high-cost assets with low-cost ones results in prices that are higher than when they are left to co-exist. The findings have implications for, among others, wholesale electricity markets, in which wind power is increasingly important.

Download Info

If 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.
File URL: http://wwwen.uni.lu/content/download/53159/634728/file/Production%20intermittence%20in%20spot%20markets_2011%20(15).pdf
Download Restriction: no

Bibliographic Info

Paper provided by Luxembourg School of Finance, University of Luxembourg in its series LSF Research Working Paper Series with number 11-15.

as in new window
Length:
Date of creation: 2011
Date of revision:
Handle: RePEc:luc:wpaper:11-15

Contact details of provider:
Postal: Bâtiment K2, 4, rue Albert Borschette, L-1246 Luxembourg-Kirchberg
Phone: +352 46 66 44 6335
Fax: +352 46 66 44 6811
Email:
Web page: http://wwwen.uni.lu/luxembourg_school_of_finance
More information through EDIRC

Related research

Keywords: behavioural economics; experience-weighted attractions (EWA); intermittence; production technology; spot markets.;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Duranton, Gilles & Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2010. "The Economics of Clusters: Lessons from the French Experience," OUP Catalogue, Oxford University Press, number 9780199592203.
  2. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 661465000000000387, David K. Levine.
  3. Fudenberg, Drew & Tirole, Jean, 1983. "Sequential Bargaining with Incomplete Information," Review of Economic Studies, Wiley Blackwell, vol. 50(2), pages 221-47, April.
  4. Ken Binmore, 1980. "Nash Bargaining Theory III (Now published in The Economics of Bargaining, edited by K. Binmore and P. Dasgupta, (Basil Blackwell, Oxford, 1987).)," STICERD - Theoretical Economics Paper Series /1980/15, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  5. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521887427, October.
  6. Ken Binmore, 1980. "Nash Bargaining Theory II (Now published in The Economics of Bargaining, edited by K. Binmore and P. Dasgupta, Basil Blackwell, Oxford, 1987.)," STICERD - Theoretical Economics Paper Series /1980/14, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  7. Belleflamme,Paul & Peitz,Martin, 2010. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9780521681599, October.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:luc:wpaper:11-15. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martine Zenner).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.