Liberalizing the gas industry: Take-or-pay contracts, retail competition and wholesale trade

► This paper examines retail competition in a liberalized gas market. ► Gas is purchased under take-or-pay contracts and resold to final users. ► Then, firms select different segments of the market and serve them as monopolists. ► The development of wholesale trade induces generalized entry and retail competition. ► A compulsory wholesale market or restrictions to linear contracts are required.