Arbeitspapier
Sequential markets, market power and arbitrage
We develop a framework to characterize strategic behavior in sequential markets under imperfect competition and restricted entry in arbitrage. Our theory predicts that these two elements can generate a systematic price premium. We test the model predictions using micro-data from the Iberian electricity market. We show that the observed price differences and firm behavior are consistent with the model. Finally, we quantify the welfare effects of arbitrage using a structural model. In the presence of market power, we show that full arbitrage is not necessarily welfare-enhancing, reducing consumer costs but increasing deadweightloss.
- Sprache
-
Englisch
- Erschienen in
-
Series: CSIO Working Paper ; No. 0135
Klassifikation
Wirtschaft
Ereignis
Geistige Schöpfung
(wer)
Ito, Koichiro
Reguant, Mar
Reguant, Mar
Ereignis
Veröffentlichung
(wer)
Northwestern University, Center for the Study of Industrial Organization (CSIO)
(wo)
Evanston, IL
(wann)
2015
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:22 MESZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Ito, Koichiro
- Reguant, Mar
- Northwestern University, Center for the Study of Industrial Organization (CSIO)
Entstanden
- 2015
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