Competition Buzz: Market Power in Electric Energy Generation Spot Markets: Analysis Methodology
By:John J. Garcia, Santiago Bohorquez, Gustavo A. Lopez Sr. & Freddy Marin
After analyzing international experiences related with power market monitoring and controlling, a methodology based on Colombia´s electric pool characteristics is presented. This method allows following strategic behavior about stock price in this market. An exponential model is proposed for the pool supply function based on a spot prices model, explained by costs, weather conditions, Commission of Gas and Energy Regulation interventions, daily demand, generated quantities and historical price. Through a convolution (similar to Kalman´s filter technique) about historical prices, parameters and associated dynamic elasticity related with quantities that specify the stock price behavior are estimated. These estimations are also used for structuring profits of a Cournot model, quantities competition, that evidence the positive effect, by stock price diminishing, of higher future contracting levels in the Colombia´s electric pool.
Full Content: SSRN
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Subscribers Defend $4.7 Billion Antitrust Verdict Against NFL in Court Filings
Jul 19, 2024 by
CPI
Von der Leyen Calls for Competition Policy to Boost EU Companies’ Growth
Jul 19, 2024 by
CPI
Vermont AG Sues Pharmacy Benefit Managers Over Drug Prices
Jul 18, 2024 by
CPI
Australians Face Increased Stamp Prices Following ACCC Approval
Jul 18, 2024 by
CPI
Live Nation Seeks Dismissal of DOJ Antitrust Allegations
Jul 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Private Equity Roll-Up Schemes
Jun 28, 2024 by
CPI
The FTC’s Focus on Private Equity is Warranted
Jun 28, 2024 by
CPI
Unraveling the Roll-Up: Private Equity’s Misunderstood Investment Strategy
Jun 28, 2024 by
CPI
Antitrust Focus on Private Equity Funds and Serial Acquisitions
Jun 28, 2024 by
CPI
Private Equity Roll-Ups Amidst Heightened Antitrust Enforcement
Jun 28, 2024 by
CPI