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Are gas release auctions effective?

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  • Bolle, Friedel
  • Breitmoser, Yves

Abstract

European and national cartel authorities have required dominant national gas pipelines to auction off certain quantities (typically about 10 % of their sales) to competitors. Do such auctions really improve the competitiveness of the wholesale market? Based on a model where oligopolistic pipelines could voluntarily auction gas to competitors (or precommit on certain sales otherwise) we conclude that such release auctions often have no effect because the additional obligations will simply crowd out voluntary sales.

Suggested Citation

  • Bolle, Friedel & Breitmoser, Yves, 2006. "Are gas release auctions effective?," Discussion Papers 256, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    • Handle: RePEc:zbw:euvwdp:256
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    1. Le Coq, Chloe & Orzen, Henrik, 2006. "Do forward markets enhance competition?: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 61(3), pages 415-431, November.
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