Strategic Reneging and Market Power in Sequential Markets.
This article investigates the incentives for firms with market power to manipulate markets by strategically reneging on forward commitments. We first study the behavior of a dominant firm in a two‐period model with demand uncertainty. We then use the model's predictions and a machine learning approa...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 56; no. 1; pp. 3 - 35 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Spring2025
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=183913522&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 183913522 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Spring2025 vid: 56 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 183913522 10.1111/1756-2171.12488 ppf: 3 ppct: 32 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 1.1MB tig: atl: Strategic Reneging and Market Power in Sequential Markets. aug: au: Benatia, David de Villemeur, Étienne Billette affil: HEC Montréal, Montréal Québec,, Canada LEM‐CNRS (UMR 9221), Université de Lille, Lille, France su: Electricity markets Market power Market manipulation Functional analysis Machine learning sug: subj: Electricity markets Market power Market manipulation Functional analysis Machine learning keyword: functional data analysis market manipulation strategic outages wind curtailment functional data analysis market manipulation strategic outages wind curtailment ab: This article investigates the incentives for firms with market power to manipulate markets by strategically reneging on forward commitments. We first study the behavior of a dominant firm in a two‐period model with demand uncertainty. We then use the model's predictions and a machine learning approach to investigate multiple occurrences of reneging on long‐term commitments in Alberta's electricity market in 2010–2011. We find that a supplier significantly increased its revenues by strategically reneging on its capacity availability obligations, causing Alberta's annual electricity procurement costs to increase by as much as $600 million (+17%). pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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