Mixed oligopoly and market power mitigation: evidence from the colombian wholesale electricity market

Suarez, Carlos

doi:http://dx.doi.org/10.1111/joie.12328

Mixed oligopoly and market power mitigation: evidence from the colombian wholesale electricity market

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Citation

Suarez C. Mixed oligopoly and market power mitigation: evidence from the colombian wholesale electricity market. J Ind Econ. 2023;LXXI(2):354-406. DOI: 10.1111/joie.12328

Abstract

Using information on price bids in wholesale electricity pools and empirical techniques described in the literature on electricity markets, this study identifies the market power mitigation effect of public firms in the Colombian market. The results suggest that while private firms exercise less market power than is predicted by a profit-maximization model, there are marked differences between private and public firms in their exercise of unilateral market power. These findings support the hypothesis of the market power mitigation effect of public firms.