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We estimate market power in California's thin water market. Market frictions may distort the potential welfare gains from water marketing. We use a Nash-Cournot model and derive a closed-form solution for the extent of market power in a typical water market setting. We then use this solution to...
Persistent link: https://www.econbiz.de/10012427197
Water markets with market power are analysed as multi-market Cournot competition in which the river structure constrains access to local markets and limited resources impose capacity constraints. Conditions for uniqueness are identified. Lerner indices are larger under binding resource...
Persistent link: https://www.econbiz.de/10010326027
Taking account of sinks credits as agreed in Bonn and Marrakech, this paper illustrates how market power could be exerted in the absence of the US ratification under Annex 1 trading and explores the potential implications of non-competitive supply behavior for the international market of...
Persistent link: https://www.econbiz.de/10010298093
Taking account of sinks credits as agreed in Bonn and Marrakech, this paper illustrates how market power could be exerted in the absence of the US ratification under Annex 1 trading and explores the potential implications of the non-competitive supply behavior for the international market of...
Persistent link: https://www.econbiz.de/10011335690
static, non-cooperative oligopoly models, which are widely used to model electricity markets, by testing the static Nash …
Persistent link: https://www.econbiz.de/10010270402
In Hotelling's fundamental model (1929), the geographical distance and high transportation costs grant firms present in a market a certain power over local buyers in their neighborhoods. Starting from his model, this study shows that in the competition between a bank and a microfinance...
Persistent link: https://www.econbiz.de/10011390723
We investigate the role tacit collusion plays in Asymmetric Price Transmission (APT), the tendency of prices to respond more rapidly to positive than to negative cost shocks. Using a laboratory experiment that isolates the effects of tacit collusion, we observe APT pricing behavior in markets...
Persistent link: https://www.econbiz.de/10012438281
We show that a common regulatory mandate in electricity markets that use location-based pricing that requires all customers to purchase their wholesale electricity at the same quantity-weighted average of the locational prices can increase the performance of imperfectly competitive wholesale...
Persistent link: https://www.econbiz.de/10011917060
We examine investment incentives and market power in an experimental market. We characterize market power as the strategic interdependence of subjects' investment decisions and output decisions. The market is designed so that investment and output decisions can be jointly characterized as...
Persistent link: https://www.econbiz.de/10012056279
On a homogeneous oligopoly market informed sellers are fully aware of market demand whereas uninformed sellers only …
Persistent link: https://www.econbiz.de/10010310279