Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
884671 | Journal of Economic Behavior & Organization | 2008 | 13 Pages |
Abstract
We present an agent-based model of a multi-tier energy market. We show how reward interdependence between strategic business units within a vertically integrated firm can increase its profits in oligopolistic energy markets. The effects are shown to be distinct from those of the raising rivals’ costs model. In our case, higher prices relate to the nature of energy markets, which facilitate the emergence of financial netback effects.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Augusto Rupérez Micola, Albert Banal-Estañol, Derek W. Bunn,