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Private management and strategic bidding behavior in electricity markets: Evidence from Colombia

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  • Carlos Suarez

    (Department of Econometrics, Statistics and Applied Economics, Research Group on Governments and Markets, University of Barcelona, Avinguda Diagonal 690, 08034 Barcelona, Tower 6 Floor 3. Engineering Department, Research Group on Energy, Environment and Development, Jorge Tadeo Lozano University.)

Abstract

In this paper I undertake a policy evaluation of the impact of the switch from public to private management of electricity generation units on their price bidding strategies. I draw on information about the bidding strategies of units in the Colombian electricity market to perform a double difference analysis. The evidence observed is coherent with theoretical behavioral predictions for profit maximizing agents facing short positions in forward contracts.

Suggested Citation

  • 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.
    • Handle: RePEc:ira:wpaper:202102
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    References listed on IDEAS

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    More about this item

    Keywords

    Electricity Markets; Market Power; Privatization; Mixed Oligopoly; Double Differences. JEL classification: L13; L94; C10.;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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