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Can market power in the electricity spot market translate into market power in the hedge market?

dc.contributor.authorde Braganca, Gabriel Fiuza
dc.contributor.authorDaglish, Toby
dc.date.accessioned2015-02-11T21:39:38Z
dc.date.accessioned2022-07-07T02:20:43Z
dc.date.available2015-02-11T21:39:38Z
dc.date.available2022-07-07T02:20:43Z
dc.date.copyright8/07/2012
dc.date.issued2012
dc.description.abstractElectricity is a non-storable commodity frequently traded in complex markets characterized by oligopolistic structures and uniform-price auctions. These particularities confer to electricity prices idiosyncratic patterns not addressed by the usual commodity pricing literature. This paper allows for oligopoly vertical integration and uniform-price auction and derives a linear equilibrium relationship between spot prices and state variables affecting firms' costs and demand under usual functional simplications. It applies a two-factor forward pricing model over the equilibrium spot price process and shows that forward prices can be positivelyaffected by spot market power. Thus hedge prices may be affected bymarket power as it appears in the spot market.en_NZ
dc.formatpdfen_NZ
dc.identifier.urihttps://ir.wgtn.ac.nz/handle/123456789/19239
dc.language.isoen_NZ
dc.publisherTe Herenga Waka—Victoria University of Wellingtonen_NZ
dc.rightsPermission to publish research outputs of the New Zealand Institute for the Study of Competition and Regulation has been granted to the Victoria University of Wellington Library. Refer to the permission letter in record: https://ir.wgtn.ac.nz/handle/123456789/18870en_NZ
dc.titleCan market power in the electricity spot market translate into market power in the hedge market?en_NZ
dc.typeTexten_NZ
vuwschema.contributor.unitNew Zealand Institute for the Study of Competition and Regulationen_NZ
vuwschema.contributor.unitVictoria Business School: Orauarikien_NZ
vuwschema.subject.anzsrcfor149999 Economics not elsewhere classifieden_NZ
vuwschema.subject.anzsrcforV2389999 Other economics not elsewhere classifieden_NZ
vuwschema.type.vuwWorking or Occasional Paperen_NZ

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