In the new deregulated competitive Italian electric power market many competitive entities with different goals have replaced the old centralized decision making of the monopolistic environment. In this new contest many interesting issues arise as the market complexity, the firm strategic behavior, the market power size, and so on. The aim of this paper is twofold. The first one is to build the residual demand for each “Italian” Generation Companies. The construction of the residual demand curve system is the necessary condition to get the second aim which is to measure the unilateral market power for the “Italian” Generation Companies. Following the Wolak (2003) approach the appropriate measure of the unilateral market power is the Lerner index based on the residual demand curve elasticity which is computed as arc elasticity.
Measuring Market Power in Wholesale Italian Electricity Markets: Preliminary results - April 2004,
BOLLINO, Carlo Andrea;
2005-01-01
Abstract
In the new deregulated competitive Italian electric power market many competitive entities with different goals have replaced the old centralized decision making of the monopolistic environment. In this new contest many interesting issues arise as the market complexity, the firm strategic behavior, the market power size, and so on. The aim of this paper is twofold. The first one is to build the residual demand for each “Italian” Generation Companies. The construction of the residual demand curve system is the necessary condition to get the second aim which is to measure the unilateral market power for the “Italian” Generation Companies. Following the Wolak (2003) approach the appropriate measure of the unilateral market power is the Lerner index based on the residual demand curve elasticity which is computed as arc elasticity.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
