market power

Market Power and Incentive-Based Capacity Payment Mechanisms

Capacity markets provide guaranteed payments to electricity generation unit owners for having the firm capacity to produce electricity. Historically, these markets are plagued by the weak incentives they provide for plants to be available during …

An Economic Perspective on Mexico's Nascent Deregulation of Retail Petroleum Markets

Retail petroleum markets in Mexico are on the cusp of a historic deregulation. For decades, all 11,000 gasoline stations nationwide have carried the brand of the state-owned petroleum company Pemex and sold Pemex gasoline at federally regulated …

Market Power in a Hydro-Dominated Wholesale Electricity Market

Concerns about market power have led to regulatory constraints on the price-setting process in nearly all wholesale electricity markets around the world. We study the conditions that led to the exercise of market power in the Colombian wholesale …

Diagnosing the Causes of the Recent El Niño Event and Recommendations for Reform

In this report we identify the key drivers of observed market outcomes in the Colombian electricity supply industry during the fourth quarter of 2015 and first quarter of 2016, the time period covered by the most recent El Niño Event. We analyze how …

How Do Firms Exercise Unilateral Market Power? Empirical Evidence from a Bid-Based Wholesale Electricity Market

Merger Analysis in Restructured Electricity Supply Industries: The Proposed PSEG and Exelon Merger (2006)