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Author: | Schuler, R.E. |
Title: | Analytic and experimentally derived estimates of market power in deregulated electricity systems: policy implications for the management and institutional evolution of the industry |
Journal: | Decision Support Systems
2001 : JAN, VOL. 30:3, p. 341-355 |
Index terms: | ELECTRICITY INDUSTRY DEREGULATION INDUSTRIAL DEVELOPMENT SUPPLIERS |
Language: | eng |
Abstract: | While state regulatory bodies may be able to forestall the onset of retail wheeling and non-regulated retail energy pricing until a single supplier does not dominate initial market shares, it is more difficult to mute the exercise of market power by generators serving electrically isolated load pockets. In both instances, if the accural of some excess profits by initial, non-regulated suppliers are not tolerated, then little incentive will have been provided for competitors to enter the market and for more efficient technologies to evolve. Estimates are provided in this analysis of the circumstances for and the extent and duration of the exercise of market power. |
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