MARKET POWER AND INTEGRATED REGIONAL MARKETS OF ELECTRICITY: A SIMULATION OF THE MIBEL

Authors

  • Marta Ferreira Dias University of Aveiro, Portugal Author
  • Silvia F. Jorge University of Aveiro, Portugal Author

DOI:

https://doi.org/10.20472/ES.2017.6.2.003

Keywords:

MIBEL, Market Power, Cournot Simulation Model

Abstract

We consider a partial equilibrium model where we study the integration of two oligopolistic markets that are not symmetric (in number of firms, in demand or market dimension). We present a simulation for the integration of the Iberian wholesale electricity market (MIBEL) and show how the exercise of market power will evolve with regional full integration. The simulation results show that, as expected, market power is lower after full integration. However, even after full integration, market power is still a feature of the market. There fore, the full benefits of liberalisation and integration are not seized by the consumers since wholesale prices persist to be higher than marginal costs.

 

Data:
Received: 3 Sep 2017
Revised: 17 Oct 2017
Accepted: 6 Nov 2017
Published: 20 Nov 2017

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Published

2017-11-20

Issue

Vol. 6 No. 2 (2017): International Journal of Economic Sciences

Section

Articles

License

Copyright (c) 2017 Marta Ferreira Dias, Silvia F. Jorge (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to Cite

Dias, M. F., & Jorge, S. F. (2017). MARKET POWER AND INTEGRATED REGIONAL MARKETS OF ELECTRICITY: A SIMULATION OF THE MIBEL. International Journal of Economic Sciences, 6(2), 45-67. https://doi.org/10.20472/ES.2017.6.2.003
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