Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
987551 | Socio-Economic Planning Sciences | 2007 | 19 Pages |
Abstract
We compare fully disintegrated and partially vertically integrated structures using a comparative statics approach. In this paper, the analysis will focus on the last stage of the game: the bidding game. We find that partial vertical integration between generators and retailers tends to lower wholesale prices but not unambiguously. Depending on which firm (vertically integrated or disintegrated generator) has installed the higher capacity and depending on level of demand, prices can stay unchanged or even rise.
Related Topics
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Authors
Eloy Pérez,