Strategic Behaviour in International Metallurgical Coal Markets
This paper analyses whether prices and trade-ﬂows in the international market for metallurgical coals were subject to non-competitive conduct in the period 2008 to 2010. To do so, I develop mathematical programming models – a Stackelberg model, two varieties of a Cournot model, and a perfect competition model – for computing spatial equilibria in international resource markets. Results are analysed with various statistical measures to assess prediction accuracy of the models. The results show that real market equilibria cannot be reproduced with a competitive model. However, real market outcomes can be accurately simulated with the non-competitive models suggesting that market equilibria in the international metallurgical coal trade were subject to strategic behaviour of coal exporters.
|Date of creation:||20 Sep 2012|
|Contact details of provider:|| Postal: Vogelsanger Str. 321, Alte Wagenfabrik, 50827 Köln|
Phone: ++ 49 (0) 221 277 29 100
Fax: ++ 49 (0) 221 277 29 400
Web page: http://www.ewi.uni-koeln.de/
More information through EDIRC
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.:
- Stephen W. Salant & Sheldon Switzer & Robert J. Reynolds, 1983. "Losses From Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium," The Quarterly Journal of Economics, Oxford University Press, vol. 98(2), pages 185-199.
- Wolak, Frank A. & Kolstad, Charles D., 1988. "Measuring relative market power in the Western U.S. coal market using Shapley values," Resources and Energy, Elsevier, vol. 10(4), pages 293-314, December.
- Bushnell, James & Mansur, Erin T. & Saravia, Celeste, 2008.
"Vertical Arrangements, Market Structure and Competition: An Analysis of Restructured U.S. Electricity Markets,"
Staff General Research Papers Archive
13130, Iowa State University, Department of Economics.
- James B. Bushnell & Erin T. Mansur & Celeste Saravia, 2008. "Vertical Arrangements, Market Structure, and Competition: An Analysis of Restructured US Electricity Markets," American Economic Review, American Economic Association, vol. 98(1), pages 237-266, March.
- James B. Bushnell & Erin T. Mansur & Celeste Saravia, 2007. "Vertical Arrangements, Market Structure, and Competition An Analysis of Restructured U.S. Electricity Markets," NBER Working Papers 13507, National Bureau of Economic Research, Inc.
- Daniel Huppmann and Franziska Holz, 2012. "Crude Oil Market Power—A Shift in Recent Years?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
- Zhuang, Jifang & Gabriel, Steven A., 2008. "A complementarity model for solving stochastic natural gas market equilibria," Energy Economics, Elsevier, vol. 30(1), pages 113-147, January.
- Graham, Paul & Thorpe, Sally & Hogan, Lindsay, 1999. "Non-competitive market behaviour in the international coking coal market," Energy Economics, Elsevier, vol. 21(3), pages 195-212, June.
- Yang, Chin W. & Hwang, Ming J. & Sohng, Soong N., 2002. "The Cournot competition in the spatial equilibrium model," Energy Economics, Elsevier, vol. 24(2), pages 139-154, March.
- Franziska Holz & Christian von Hirschhausen & Claudia Kemfert, 2006.
"A Strategic Model of European Gas Supply (GASMOD),"
Discussion Papers of DIW Berlin
551, DIW Berlin, German Institute for Economic Research.
- Chang, Hui-Shung, 1997. "Coking coal procurement policies of the Japanese steel mills: changes and implications," Resources Policy, Elsevier, vol. 23(3), pages 125-135, September.
- Charles D. Kolstad & Anthony E. Burris, 1986. "Imperfectly Competitive Equilibria in International Commodity Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 27-36.
- Paulus, Moritz & Trüby, Johannes, 2011. "Coal lumps vs. electrons: How do Chinese bulk energy transport decisions affect the global steam coal market?," Energy Economics, Elsevier, vol. 33(6), pages 1127-1137.
- Johannes Truby and Moritz Paulus, 2012.
"Market Structure Scenarios in International Steam Coal Trade,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 3).
- Trueby, Johannes & Paulus, Moritz, 2011. "Market Structure Scenarios in International Steam Coal Trade," EWI Working Papers 2011-2, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
- Yihsu Chen & Benjamin Hobbs & Sven Leyffer & Todd Munson, 2006. "Leader-Follower Equilibria for Electric Power and NO x Allowances Markets," Computational Management Science, Springer, vol. 3(4), pages 307-330, September.
- Bard, Jonathan F. & Plummer, John & Claude Sourie, Jean, 2000. "A bilevel programming approach to determining tax credits for biofuel production," European Journal of Operational Research, Elsevier, vol. 120(1), pages 30-46, January.
- Clemens Haftendorn & Franziska Holz, 2010. "Modeling and Analysis of the International Steam Coal Trade," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 205-230.
- Bradley Bowden, 2012. "A History Of The Pan‐Pacific Coal Trade From The 1950s To 2011: Exploring The Long‐Term Effects Of A Buying Cartel," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 52(1), pages 1-24, 03.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716.
- Kolstad, Charles D. & Abbey, David S., 1984. "The effect of market conduct on international steam coal trade," European Economic Review, Elsevier, vol. 24(1), pages 39-59.
- Gabriel, Steven A. & Leuthold, Florian U., 2010. "Solving discretely-constrained MPEC problems with applications in electric power markets," Energy Economics, Elsevier, vol. 32(1), pages 3-14, January.
When requesting a correction, please mention this item's handle: RePEc:ris:ewikln:2012_012. 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: (Sabine Williams)
If references are entirely missing, you can add them using this form.