haku: @indexterm ELECTRICITY INDUSTRY / yhteensä: 214
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| Tekijä: | Borenstein, S. (et al.) |
| Otsikko: | Inefficiencies and market power in financial arbitrage: a study of Californias's electricity markets |
| Lehti: | Journal of Industrial Economics
2008 : JUN, VOL. 56:2, p. 347-378 |
| Asiasana: | USA electricity industry markets trading prices |
| Vapaa asiasana: | financial arbitrage |
| Kieli: | eng |
| Tiivistelmä: | Prior to the collapse of California's restructured electricity market, power traded in both a forward and a spot market for delivery at the same times and locations. Yet, prices in the two markets often differed in significant and predictable ways. It is argued that this apparent inefficiency persisted due to most firms believing that trading on inter-market price differences would yield regulatory penalties. For the few firms making such trades, it was not profit maximizing to eliminate the price differences completely. In 2000, skyrocketing prices changed the major buyers' incentives and aggravated the price differentials btw. the markets. |
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