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Regulatory Threat in Vertically Related Markets; The Case of German Electricity

  • Brunekreeft, G.
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    This paper applies the concept of regulatory threat to analyse the electricity supply industry in Germany, where in contrast to other European member states, there is no ex-ante regulation of network access charges. Instead, network access relies on industrial self-regulation and ex-post control by the Cartel Office. The paper modifies the concept of regulatory threat to vertically related markets, stressing the balance between the level of the network access charges and (non-price) discrimination against their parties. The conceptual framework appears to explain developments in the German electricity sector accurately and thus provides a useful tool for policy analysis.

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    File URL: http://www.econ.cam.ac.uk/electricity/publications/wp/ep10.pdf
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    Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0228.

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    Length: 21
    Date of creation: Oct 2002
    Date of revision:
    Handle: RePEc:cam:camdae:0228
    Note: CMI IO
    Contact details of provider: Web page: http://www.econ.cam.ac.uk/index.htm

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    1. Glazer, Amihai & McMillan, Henry, 1992. "Pricing by the Firm under Regulatory Threat," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 1089-99, August.
    2. Gert Brunekreeft, 2002. "Regulation and Third-Party Discrimination in the German Electricity Supply Industry," European Journal of Law and Economics, Springer, vol. 13(3), pages 203-220, May.
    3. Brunekreeft, Gert & Keller, Katja, 2000. "The electricity supply industry in Germany: market power or power of the market?," Utilities Policy, Elsevier, vol. 9(1), pages 15-29, March.
    4. Driffield, Nigel & Ioannidis, Christos, 2000. "Effectiveness and effects of attempts to regulate the UK petrol industry," Energy Economics, Elsevier, vol. 22(3), pages 369-381, June.
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