We develop a framework to characterize strategic behavior in sequential markets under
imperfect competition and restricted entry in arbitrage. Our theory predicts that these two …

Wholesale electricity markets have several features that increase the likelihood of collusion,
including frequent interaction, multimarket contact, and a high degree of information …

Although different jurisdictions around the world had different motivations for restructuring
their electricity supply industries and introducing wholesale electricity markets, all had the …

Horizontal shifts in bid curves observed in wholesale electricity markets are consistent with
Cournot competition. Quantity competition reduces the informational requirements …

Transmission expansions can increase the extent of competition faced by wholesale
electricity suppliers with the ability to exercise unilateral market power. This can cause them …

Asset divestitures play a central role in antitrust and competition policy. Despite their
importance, empirical evidence on their impacts on market competition is limited. We …

Firms expect to recover the fixed costs required to start production by earning positive
operating profits in subsequent periods. We develop a dynamic competitive benchmark that …

Producers and consumers will make the investments and innovations necessary to transition
to a low carbon electricity supply industry only if they are compensated for their efforts. In the …

In most electricity markets, the bidding rule requires wind power producers (WPPs) to bid in
the day-ahead market. Consequently, WPPs compete with marginal generators rather than …

Capacity markets provide guaranteed payments to electricity generation unit owners for
having the ability to produce a fixed amount energy under stressed system conditions …