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Determining market power in deregulated generation markets by measuring price-cost margins

Journal Article · · Electricity Journal

In this article. the author considers one of the more prominent examples of the SFE type by Aleksandr Rudkevich, Max Duckworth, and Richard Rosen (RDR). The conclusion of their paper, that fewer than 30 competitive firms (or, equivalently, an HHI over 333) likely constitute an impermissibly concentrated market, is a startling one, since it is unlikely that any deregulated electricity market will have this many competitors. In examining the source of the RDR conclusion in some detail and seeing where it goes awry, the author thinks it is possible to glean principles that can guide regulators to draw more sensible conclusions about the number of competitors required in these markets.

OSTI ID:
290002
Journal Information:
Electricity Journal, Journal Name: Electricity Journal Journal Issue: 6 Vol. 11; ISSN ELEJE4; ISSN 1040-6190
Country of Publication:
United States
Language:
English