We analyse vertical integration between generators and retailers in electricity markets and we discuss the implications for price decisions of the presence of asymmetric (cost) information in a simple P-A framework.We analyze a situation in which generators post supply bids taking into account the profit of the entire vertically integrated group they belong to. We then discuss the way in which the degree of vertical integration affects this bidding strategy. Using Italian electricity auction data we show how bid prices posted by a pivotal producer are significantly influenced by variables incorporating vertical integration into the econometric model.

Bosco, B., Visconti Parisio, L., Pelagatti, M. (2016). Price coordination in vertically integrated electricity markets: Theory and empirical evidence. THE ENERGY JOURNAL, 37(1), 181-194 [10.5547/01956574.37.1.bbos].

Price coordination in vertically integrated electricity markets: Theory and empirical evidence

Bosco, B
;
Visconti Parisio, L;Pelagatti, M
2016

Abstract

We analyse vertical integration between generators and retailers in electricity markets and we discuss the implications for price decisions of the presence of asymmetric (cost) information in a simple P-A framework.We analyze a situation in which generators post supply bids taking into account the profit of the entire vertically integrated group they belong to. We then discuss the way in which the degree of vertical integration affects this bidding strategy. Using Italian electricity auction data we show how bid prices posted by a pivotal producer are significantly influenced by variables incorporating vertical integration into the econometric model.
Articolo in rivista - Articolo scientifico
Electricity markets; Regulation; Strategic delegation; Vertical integration;
Electricity markets, Vertical integration and market power
English
181
194
14
Bosco, B., Visconti Parisio, L., Pelagatti, M. (2016). Price coordination in vertically integrated electricity markets: Theory and empirical evidence. THE ENERGY JOURNAL, 37(1), 181-194 [10.5547/01956574.37.1.bbos].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/96715
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