Transmission rights and market power on electric power networks

RAND Journal of Economics

Volumn 31, Issue 3, 2000, Pages 450-487

  Joskow, Paul L ^c   Tirole, Jean ^a,b  

^a TOULOUSE SCHOOL OF ECONOMICS   (France)

^b UNIVERSITÉ PARIS EST   (France)

^c NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0034368548     PISSN: 07416261     EISSN: None     Source Type: Journal    
DOI: 10.2307/2600996     Document Type: Article

References (31)

1. ADMATI, A.R. PFLEIDERER, P., AND ZECHNER, J. "Large Shareholder Activism, Risk Sharing and Financial Market Equilibrium." Journal of Political Economy, Vol. 102 (1994), pp. 1087-1130.
2. ALLAZ, B. "Oligopoly, Uncertainty and Strategic Forward Transactions." International Journal of Industrial Organization, Vol. 10 (1992), pp. 297-308.
3. -AND VILA, J.-L. "Cournot Competition, Forward Markets and Efficiency." Journal of Economic Theory, Vol. 59 (1993), pp. 1-16.
4. BORENSTEIN, S., BUSHNELL, J., AND WOLAK, F. "Diagnosing Market Power in California's Deregulated Wholesale Electricity Market." University of California Energy Institute, Working Paper PWP-06, March 2000.
5. BURKART, M., GROMB, D., AND PANUNZI, E "Why Higher Takeover Premia Protect Minority Shareholders." Journal of Political Economy, Vol. 106 (1998), pp. 172-204.
6. BUSHNELL, J. "Transmission Rights and Market Power." Electricity Journal, Vol. 12 (1999), pp. 77-85.
7. -AND WOLAK, F. "Regulation and the Leverage of Local Market Power in the California Electricity Market." Presented at the 1999 NBER Summer Industrial Organization Workshop, July 1999.
8. CALIFORNIA INDEPENDENT SYSTEM OPERATOR. Market Power in the San Diego Basin: Addendum to Annual Report on Market Issues and Performance. Folsom, Calif.: California ISO, 1999.
9. CHAD, H.P. AND PECK, S. "A Market Mechanism for Electric Power Transmission." Journal of Regulatory Economics, Vol. 10 (1996), pp. 25-60.
10. GREEN, R. "Contracts and the Pool." Mimeo, University of Cambridge, Department of Applied Economics, 1992.
11. -AND NEWBERY, D. "Competition in the British Electricity Spot Market." Journal of Political Economy, Vol. 100 (1992), pp. 929-953.
12. GROSSMAN, S.I. AND HART, O.D. "Takeover Bids, the Free Rider Problem, and the Theory of the Corporation." Bell Journal of Economics, Vol. 11 (1980), pp. 42-64.
13. HAUBRICH, H.J. AND FRITZ, W. "Cross-Border Electricity Transmission Tariffs. Aachen: Final Report for the European Commission (DG 17), 1999.
14. HOGAN, W.W. "Contract Networks for Electric Power Transmission." Journal of Regulatory Economics, Vol. 4 (1992), pp. 211-242.
15. HOLMSTRÖM, B. AND NALEBUFF, B. "To the Raider Goes the Surplus? A Reexamination of the Free-Rider Problem." Journal of Economics and Management Strategy, Vol. 1 (1992), pp. 37-62.
16. -AND TIROLE, J. "Private and Public Supply of Liquidity." Journal of Political Economy, Vol. 106 (1998), pp. 1-40.
17. JOSKOW, P.L. "Introducing Competition into Regulated Network Industries: From Hierarchies to Markets in Electricity." Industrial and Corporate Change, Vol. 5 (1996), pp. 341-382.
18. -AND SCHMALENSEE, R. Markets for Power: An Analysis of Electric Utility Deregulation Cambridge Mass.: MIT Press, 1983.
19. -AND TIROLE, J. "Transmission Rights and Market Power on Electric Power Networks. I: Financial Rights." Mimeo, MIT and IDEI, 1999a.
20. -AND -. "Transmission Rights and Market Power on Electric Power Networks. II: Physical Rights." Mimeo, MIT and IDEI, 1999b.
21. KLEMPERER, P.D. AND MEYER, M.A. "Supply Function Equilibria in Oligopoly Under Uncertainty." Econometrica, Vol. 57 (1989), pp. 1243-1277.
22. KYLE, A.S. AND VILA, J.-L. "Noise Trading and Takeovers." RAND Journal of Economics, Vol. 22 (1991), pp. 54-71.
23. NASSER, T.O. Imperfect Markets for Power: Competition and Residual Regulation in the Electricity Industry. Ph.D. dissertation, Department of Economics, MIT, 1997.
24. OREN, S.S. "Preemption of TCCs and Deadweight Loss in Centrally Dispatched Electricity Systems with Competitive Generation." University of California Energy Institute POWER Working Paper no. 041, 1996.
25. -. "Economic Inefficiency and Passive Transmission Rights in Congested Electric Systems with Competitive Generation." Energy Journal, Vol. 18 (1997), pp. 63-83.
26. -, SPILLER P., VARAIYA, P., AND WU, F. "Nodal Prices and Transmission Rights: A Critical Appraisal." Electricity Journal, Vol. 8 (1995), pp. 24-35.
27. SCHWEPPE, F., CARAMANIS, M., TABORS, R., AND BOHN, R. Spot Pricing of Electricity. Boston: Kluwer Academic, 1988.
28. SHLEIFER, A. AND VISHNY, R.W. "Greenmail, White Knights, and Shareholders' Interest." RAND Journal of Economics, Vol. 17 (1986), pp. 293-309.
29. STOFT, S. "Financial Transmission Rights Meet Cournot: How TCCs Curb Market Power." Energy Journal, Vol. 20 (1999), pp. 1-23.
30. TIROLE, J. The Theory of Industrial Organization. Cambridge, Mass.: MIT Press, 1988.
31. WOLFRAM, C.D. "Measuring Duopoly Power in the British Electricity Spot Market." American Economic Review, Vol. 89 (1999), pp. 805-826.