Can auctions control market power in emissions trading markets
AbstractUsing eight sessions (twenty-four ten-period markets) in a double ABA cross-over design, we demonstrate clear evidence of market power in double-auction emission trading markets (agents who are not constrained to only buy or sell). Conventional theory predicts that in half of the market-power environments monopsony should emerge and in half monopoly should emerge. Market-power outcomes are frequently observed, most often in the form of price discrimination, and most effectively by monopsonists.
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Bibliographic InfoPaper provided by McMaster University in its series Department of Economics Working Papers with number 1999-12.
Length: 48 pages
Date of creation: Dec 1999
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-12-12 (All new papers)
- NEP-COM-2004-12-12 (Industrial Competition)
- NEP-ENE-2004-12-12 (Energy Economics)
- NEP-ENV-2004-12-12 (Environmental Economics)
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