Roeger, Werner; Warzynski, Frédéric - Nationalökonomisk Institut, Institut for Økonomi - 2004
In this paper, we propose a new methodology to jointly estimate market power and the importance of sunk capital extending the work of Hall (1988) and Roeger (1995). We then apply this new technique to the European electricity industry using firm level data for the period 1994-1999, and analyze...