Article ID Journal Published Year Pages File Type
987551 Socio-Economic Planning Sciences 2007 19 Pages PDF
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
Social Sciences and Humanities Business, Management and Accounting Strategy and Management
Authors
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