Analysis of current practices for detecting market power in colombia’s wholesale power market
The current practices for detecting market power in Colombia’s wholesale power market are discussed in this paper. A miscalculation of the Lerner Index, the most common measure of market power, leads to an overestimation or underestimation of market power. Different alternatives to calculate the Le...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universidad de Antioquia
2012-11-01
|
| Series: | Revista Facultad de Ingeniería Universidad de Antioquia |
| Subjects: | |
| Online Access: | https://revistas.udea.edu.co/index.php/ingenieria/article/view/13768 |
| Summary: | The current practices for detecting market power in Colombia’s wholesale power market are discussed in this paper. A miscalculation of the Lerner Index, the most common measure of market power, leads to an overestimation or underestimation of market power. Different alternatives to calculate the Lerner Index are proposed in order to have a more accurate estimate of market power. Numerical results indicate that it is necessary to carefully review the current approach in Colombia.
|
|---|---|
| ISSN: | 0120-6230 2422-2844 |