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Retail Power Market Competition with Endogenous Entry Decision-An Auction Data Analysis

  • Nobuhiro Hosoe

    (National Graduate Institute for Policy Studies)

  • Shingo Takagi

    (Graduate School of Economics and Business Administration, Hokkaido University)

Deregulation in the electric power industry has been aimed at promoting competition and thereby enhancing the industry's efficiency. We use the auction data of public power procurements to study the impact of the reform on the retail power market in Japan. We quantify this impact by measuring a decline in power charges, controlling for the endogeneity bias caused by the entrants' bid-submission decisions. Our results suggest that power charges would decline by about 0.48 yen/kWh on average when two or more providers bid at an auction.

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Paper provided by National Graduate Institute for Policy Studies in its series GRIPS Discussion Papers with number 11-01.

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Length: 36 pages
Date of creation: Apr 2011
Date of revision:
Handle: RePEc:ngi:dpaper:11-01
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  11. Hattori, Toru, 2010. "Determinants of the number of bidders in the competitive procurement of electricity supply contracts in the Japanese public sector," Energy Economics, Elsevier, vol. 32(6), pages 1299-1305, November.
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  14. repec:cup:cbooks:9780521826549 is not listed on IDEAS
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