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Asymmetric price responses, market integration and market power: A study of the U.S. natural gas market

  • Murry, Donald
  • Zhu, Zhen
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We studied the market performance at selected, representative natural gas trading hubs in the U.S. and documented different price behaviors among various hubs. With NYMEX prices as the competitive benchmark, we found empirically that the spot price responses at some trading hubs were systematically asymmetric, thus demonstrating a market advantage by either buyers or sellers. We further found that the presence of market power was a very plausible explanation for this price behavior at some hubs.

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Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 30 (2008)
Issue (Month): 3 (May)
Pages: 748-765

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Handle: RePEc:eee:eneeco:v:30:y:2008:i:3:p:748-765
Contact details of provider: Web page: http://www.elsevier.com/locate/eneco

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  7. Salvanes, K.G. & Steen, F., 1995. "Testing for Market Power Using a Dynamic OLigopoly Model," Papers 13/95, Norwegian School of Economics and Business Administration-.
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  9. Stanislav Radchenko, 2004. "Oil price volatility and the asymmetric response of gasoline prices to oil price increases and decreases," Industrial Organization 0408001, EconWPA.
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