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Article: Market power in electricity markets: beyond concentration measures.
- Article from:
- The Energy Journal
- Article date:
- October 1, 1999
- Author:
CopyrightCOPYRIGHT 1999 International Association for Energy Economics. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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INTRODUCTION
Horizontal market power is one of the central issues surrounding electricity industry restructuring in the United States. There has been a great deal of discussion recently about how to best analyze the potential for market power in restructured electricity markets. Indeed, recent efforts by the Federal Energy Regulatory Commission (FERC) to streamline the process for merger analysis have focused primarily on this issue (FERC, 1998a). The FERC has proposed that market concentration measures be used as the foundation of a "screening" process of proposed mergers.
However, traditional reliance on concentration measures is likely to be ...