How Do Firms Exercise Unilateral Market Power? Evidence from a Bid-Based Wholesale Electricity Market
Author
Abstract
Suggested Citation
Download full text from publisher
References listed on IDEAS
- Rosse, James N, 1970. "Estimating Cost Function Parameters without Using Cost Data: Illustrated Methodology," Econometrica, Econometric Society, vol. 38(2), pages 256-275, March.
- Frank A. Wolak, 2007. "Quantifying the supply-side benefits from forward contracting in wholesale electricity markets," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1179-1209.
- J.J. Heckman & E.E. Leamer (ed.), 2007. "Handbook of Econometrics," Handbook of Econometrics, Elsevier, edition 1, volume 6, number 6a.
- Bresnahan, Timothy F., 1981. "Departures from marginal-cost pricing in the American automobile industry : Estimates for 1977-1978," Journal of Econometrics, Elsevier, vol. 17(2), pages 201-227, November.
- J.J. Heckman & E.E. Leamer (ed.), 2007. "Handbook of Econometrics," Handbook of Econometrics, Elsevier, edition 1, volume 6, number 6b.
- Nevo, Aviv, 2001.
"Measuring Market Power in the Ready-to-Eat Cereal Industry,"
Econometrica, Econometric Society, vol. 69(2), pages 307-342, March.
- Aviv Nevo, 1998. "Measuring Market Power in the Ready-to-Eat Cereal Industry," NBER Working Papers 6387, National Bureau of Economic Research, Inc.
- Aviv Nevo, 2003. "Measuring Market Power in the Ready-to-Eat Cereal Industry," Microeconomics 0303006, University Library of Munich, Germany.
- Nevo, Aviv, 1998. "Measuring Market Power in the Ready-To-Eat Cereal Industry," Research Reports 25164, University of Connecticut, Food Marketing Policy Center.
- Nevo, Aviv, 1998. "Measuring Market Power in the Ready-To-Eat Cereal Industry," Food Marketing Policy Center Research Reports 037, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
- Nevo, Aviv, 1999. "Measuring Market Power in the Ready-to-Eat Cereal Industry," Competition Policy Center, Working Paper Series qt7cm5p858, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-890, July.
- Roger E. Bohn & Michael C. Caramanis & Fred C. Schweppe, 1984. "Optimal Pricing in Electrical Networks over Space and Time," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 360-376, Autumn.
- Goldberg, Pinelopi Koujianou, 1995. "Product Differentiation and Oligopoly in International Markets: The Case of the U.S. Automobile Industry," Econometrica, Econometric Society, vol. 63(4), pages 891-951, July.
- R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
- Reiss, Peter C. & Wolak, Frank A., 2007. "Structural Econometric Modeling: Rationales and Examples from Industrial Organization," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 64, Elsevier.
- Bresnahan, Timothy F, 1987. "Competition and Collusion in the American Automobile Industry: The 1955 Price War," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 457-482, June.
- Frank A. Wolak, 2003. "Measuring Unilateral Market Power in Wholesale Electricity Markets: The California Market, 1998–2000," American Economic Review, American Economic Association, vol. 93(2), pages 425-430, May.
- R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
- Robert H. Porter, 1983. "A Study of Cartel Stability: The Joint Executive Committee, 1880-1886," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 301-314, Autumn.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Erik Lundin, 2021.
"Market Power and Joint Ownership: Evidence from Nuclear Plants in Sweden,"
Journal of Industrial Economics, Wiley Blackwell, vol. 69(3), pages 485-536, September.
- Lundin, Erik, 2016. "Market Power and Joint Ownership: Evidence from Nuclear Plants in Sweden," Working Paper Series 1113, Research Institute of Industrial Economics, revised 04 Nov 2019.
- Simona Bigerna, Carlo Andrea Bollino and Paolo Polinori, 2016. "Market Power and Transmission Congestion in the Italian Electricity Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
- Leigh Hancher & Adrien de Hauteclocque, 2010. "Manufacturing the EU Energy Markets. The Current Dynamics of Regulatory Practice," RSCAS Working Papers 2010/01, European University Institute.
- Brown, David P. & Eckert, Andrew, 2021.
"Analyzing firm behavior in restructured electricity markets: Empirical challenges with a residual demand analysis,"
International Journal of Industrial Organization, Elsevier, vol. 74(C).
- Brown, David P. & Eckert, Andrew, 2019. "Analyzing Firm Behaviour in Restructured Electricity Markets: Empirical Challenges with a Residual Demand Analysis," Working Papers 2019-15, University of Alberta, Department of Economics.
- Chernenko, Nadia, 2015. "Market power issues in the reformed Russian electricity supply industry," Energy Economics, Elsevier, vol. 50(C), pages 315-323.
- Wolak, Frank A., 2010. "Using restructured electricity supply industries to understand oligopoly industry outcomes," Utilities Policy, Elsevier, vol. 18(4), pages 227-246, December.
- Wolak, Frank A., 2015. "Measuring the competitiveness benefits of a transmission investment policy: The case of the Alberta electricity market," Energy Policy, Elsevier, vol. 85(C), pages 426-444.
- Bigerna, Simona & Andrea Bollino, Carlo & Polinori, Paolo, 2015. "Marginal cost and congestion in the Italian electricity market: An indirect estimation approach," Energy Policy, Elsevier, vol. 85(C), pages 445-454.
- Koichiro Ito & Mar Reguant, 2016.
"Sequential Markets, Market Power, and Arbitrage,"
American Economic Review, American Economic Association, vol. 106(7), pages 1921-1957, July.
- Koichiro Ito & Mar Reguant, 2014. "Sequential Markets, Market Power and Arbitrage," NBER Working Papers 20782, National Bureau of Economic Research, Inc.
- ITO Koichiro & Mar REGUANT, 2015. "Sequential Markets, Market Power and Arbitrage," Discussion papers 15015, Research Institute of Economy, Trade and Industry (RIETI).
- Chen Zhang & Wei Yan, 2019. "Spot Market Mechanism Design for the Electricity Market in China Considering the Impact of a Contract Market," Energies, MDPI, vol. 12(6), pages 1-23, March.
- Poletti, Stephen, 2021. "Market Power in the New Zealand electricity wholesale market 2010–2016," Energy Economics, Elsevier, vol. 94(C).
- Lewis Evans & Graeme Guthrie, 2012.
"An examination of Frank Wolak's model of market power and its application to the New Zealand electricity market,"
New Zealand Economic Papers, Taylor & Francis Journals, vol. 46(1), pages 25-34, December.
- Lewis Evans & Graeme Guthrie, 2011. "An Examination of Frank Wolak’s Model of Market Power and its Application to the New Zealand Electricity Market," Working Papers in Economics 11/10, University of Canterbury, Department of Economics and Finance.
- Carlos Suarez, 2021. "Mixed Oligopoly and Market Power Mitigation: Evidence from the Colombian Wholesale Electricity Market," IREA Working Papers 202101, University of Barcelona, Research Institute of Applied Economics, revised Jan 2021.
- Lundin, Erik & Tangerås, Thomas P., 2020.
"Cournot competition in wholesale electricity markets: The Nordic power exchange, Nord Pool,"
International Journal of Industrial Organization, Elsevier, vol. 68(C).
- Lundin, Erik & Tangerås, Thomas, 2017. "Cournot Competition in Wholesale Electricity Markets: The Nordic Power Exchange, Nord Pool," Working Paper Series 1191, Research Institute of Industrial Economics.
- Carlos Suarez, 2021. "Private management and strategic bidding behavior in electricity markets: Evidence from Colombia," IREA Working Papers 202102, University of Barcelona, Research Institute of Applied Economics, revised Jan 2021.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Richard Schmalensee, 2012. "“On a Level with Dentists?” Reflections on the Evolution of Industrial Organization," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 41(3), pages 157-179, November.
- Federico Ciliberto & Jonathan W. Williams, 2014.
"Does multimarket contact facilitate tacit collusion? Inference on conduct parameters in the airline industry,"
RAND Journal of Economics, RAND Corporation, vol. 45(4), pages 764-791, December.
- Ciliberto, Federico & Williams, Jonathan W, 2012. "Does Multimarket Contact Facilitate Tacit Collusion? Inference on Conduct Parameters in the Airline Industry," CEPR Discussion Papers 9015, C.E.P.R. Discussion Papers.
- Kutlu, Levent & Sickles, Robin & Tsionas, Mike G., 2019. "Heterogeneous Decision-Making and Market Power," Working Papers 19-008, Rice University, Department of Economics.
- Céline Bonnet & Pierre Dubois, 2010.
"Inference on vertical contracts between manufacturers and retailers allowing for nonlinear pricing and resale price maintenance,"
RAND Journal of Economics, RAND Corporation, vol. 41(1), pages 139-164, March.
- Bonnet, Céline & Dubois, Pierre, 2008. "Inference on Vertical Contracts between Manufacturers and Retailers Allowing for Non Linear Pricing and Resale Price Maintenance," CEPR Discussion Papers 6918, C.E.P.R. Discussion Papers.
- Bonnet, Céline & Dubois, Pierre, 2008. "Inference on Vertical Contracts between Manufacturers and Retailers Allowing for Non Linear Pricing and Resale Price Maintenance," IDEI Working Papers 519, Institut d'Économie Industrielle (IDEI), Toulouse, revised Dec 2008.
- Bonnet, Céline & Dubois, Pierre, 2009. "Inference on Vertical Contracts between Manufacturers and Retailers Allowing for Nonlinear Pricing and Resale Price Maintenance," IDEI Working Papers 583, Institut d'Économie Industrielle (IDEI), Toulouse.
- Bonnet, Céline & Dubois, Pierre, 2009. "Inference on Vertical Contracts between Manufacturers and Retailers Allowing for Nonlinear Pricing and Resale Price Maintenance," TSE Working Papers 09-040, Toulouse School of Economics (TSE).
- Ciliberto, Federico & Williams, Jonathan, 2010. "Does Multimarket Contact Facilitate Tacit Collusion? Inference on Conjectural Parameters in the Airline Industry," MPRA Paper 24888, University Library of Munich, Germany.
- J. Levin & L. Einav., 2012.
"Empirical Industrial Organization: A Progress Report,"
VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 1.
- Liran Einav & Jonathan Levin, 2010. "Empirical Industrial Organization: A Progress Report," Journal of Economic Perspectives, American Economic Association, vol. 24(2), pages 145-162, Spring.
- Liran Einav & Jonathan D. Levin, 2010. "Empirical Industrial Organization: A Progress Report," NBER Working Papers 15786, National Bureau of Economic Research, Inc.
- Liran Einav & Jonathan Levin, 2010. "Empirical Industrial Organization: A Progress Report," Discussion Papers 09-010, Stanford Institute for Economic Policy Research.
- Reiss, Peter C. & Wolak, Frank A., 2003. "Structural Econometric Modeling: Rationales and Examples from Industrial Organization," Research Papers 1831, Stanford University, Graduate School of Business.
- Wolak, Frank A., 2010. "Using restructured electricity supply industries to understand oligopoly industry outcomes," Utilities Policy, Elsevier, vol. 18(4), pages 227-246, December.
- Nevo, Aviv, 2001.
"Measuring Market Power in the Ready-to-Eat Cereal Industry,"
Econometrica, Econometric Society, vol. 69(2), pages 307-342, March.
- Nevo, Aviv, 1998. "Measuring Market Power in the Ready-To-Eat Cereal Industry," Research Reports 25164, University of Connecticut, Food Marketing Policy Center.
- Nevo, Aviv, 1999. "Measuring Market Power in the Ready-to-Eat Cereal Industry," Competition Policy Center, Working Paper Series qt7cm5p858, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Aviv Nevo, 2003. "Measuring Market Power in the Ready-to-Eat Cereal Industry," Microeconomics 0303006, University Library of Munich, Germany.
- Aviv Nevo, 1998. "Measuring Market Power in the Ready-to-Eat Cereal Industry," NBER Working Papers 6387, National Bureau of Economic Research, Inc.
- Nevo, Aviv, 1998. "Measuring Market Power in the Ready-To-Eat Cereal Industry," Food Marketing Policy Center Research Reports 037, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
- Rebecca Hellerstein, 2005.
"A Decomposition of the Sources of Incomplete Cross-Border Transmission,"
2005 Meeting Papers
805, Society for Economic Dynamics.
- Rebecca Hellerstein, 2006. "A decomposition of the sources of incomplete cross-border transmission," Staff Reports 250, Federal Reserve Bank of New York.
- Jaumandreu, Jordi & Moral, Maria Jose, 2006. "Identifying behaviour in a multiproduct oligopoly: Incumbents reaction to tariffs dismantling," MPRA Paper 1248, University Library of Munich, Germany.
- Manthos Delis & Maria Iosifidi & Efthymios G. Tsionas, 2014.
"On the Estimation of Marginal Cost,"
Operations Research, INFORMS, vol. 62(3), pages 543-556, June.
- Delis, Manthos D & Iosifidi, Maria & Tsionas, Efthymios, 2012. "On the estimation of marginal cost," MPRA Paper 43514, University Library of Munich, Germany.
- Luis Orea & Jevgenijs Steinbuks, 2018.
"Estimating Market Power In Homogenous Product Markets Using A Composed Error Model: Application To The California Electricity Market,"
Economic Inquiry, Western Economic Association International, vol. 56(2), pages 1296-1321, April.
- Orea, L. & Steinbuks, J., 2012. "Estimating market power in homogenous product markets using a composed error model: application to the California electricity market," Cambridge Working Papers in Economics 1220, Faculty of Economics, University of Cambridge.
- Luis Orea & Jevgenijs Steinbuks, 2012. "Estimating Market Power in Homogeneous Product Markets Using a Composed Error Model: Application to the California Electricity Market," Working Papers EPRG 1210, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
- Orea, Luis & Steinbuks, Jevgenijs, 2012. "Estimating Market Power in Homogenous Product Markets Using a Composed Error Model: Application to the California Electricity Market," Efficiency Series Papers 2012/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
- Belleflamme,Paul & Peitz,Martin, 2015.
"Industrial Organization,"
Cambridge Books,
Cambridge University Press, number 9781107687899, November.
- Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107069978.
- Ciliberto, Federico & Watkins, Eddie & Williams, Jonathan W., 2019. "Collusive pricing patterns in the US airline industry," International Journal of Industrial Organization, Elsevier, vol. 62(C), pages 136-157.
- Frank A. Wolak, 2001. "Identification and Estimation of Cost Functions Using Observed Bid Data: An Application to Electricity Markets," NBER Working Papers 8191, National Bureau of Economic Research, Inc.
- Tovar, Jorge, 2012. "Consumers’ Welfare and Trade Liberalization: Evidence from the Car Industry in Colombia," World Development, Elsevier, vol. 40(4), pages 808-820.
- Pinelopi Koujianou Goldberg & Frank Verboven, 2001.
"The Evolution of Price Dispersion in the European Car Market,"
Review of Economic Studies, Oxford University Press, vol. 68(4), pages 811-848.
- Pinelopi Koujianou Goldberg & Frank Verboven, 1998. "The Evolution of Price Dispersion in the European Car Market," NBER Working Papers 6818, National Bureau of Economic Research, Inc.
- Goldberg, Pinelopi Koujianou & Verboven, Frank, 1998. "The Evolution of Price Dispersion in the European Car Market," CEPR Discussion Papers 2029, C.E.P.R. Discussion Papers.
- Crawford, Gregory S & Shum, Matthew, 2007. "Monopoly Quality Degradation and Regulation in Cable Television," Journal of Law and Economics, University of Chicago Press, vol. 50(1), pages 181-219, February.
- Perloff, Jeffrey M, 1991.
"Econometric analysis of imperfect competition and implications for trade research,"
Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series
qt46w1j22d, Department of Agricultural & Resource Economics, UC Berkeley.
- Perloff, Jeffrey M., 1991. "Econometric Analysis of Imperfect Competition and Implications for Trade Research," Occasional Papers 233065, Regional Research Project NC-194: Organization and Performance of World Food Systems.
- Perloff, Jeffrey M., 1991. "Econometric analysis of imperfect competition and implications for trade research," CUDARE Working Papers 47252, University of California, Berkeley, Department of Agricultural and Resource Economics.
More about this item
Keywords
Unilateral Market power analysis; New Zealand; Electricity Market; multi-unit auction;All these keywords.
NEP fields
This paper has been announced in the following NEP Reports:- NEP-COM-2010-02-20 (Industrial Competition)
- NEP-ENE-2010-02-20 (Energy Economics)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rsc:rsceui:2009/36. 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: . General contact details of provider: https://edirc.repec.org/data/rsiueit.html .
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RSCAS web unit (email available below). General contact details of provider: https://edirc.repec.org/data/rsiueit.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.