Aïd, René; Chemla, Gilles; Porchet, Arnaud; Touzi, Nizar - C.E.P.R. Discussion Papers - 2011
integration in electricity markets. We develop an equilibrium model with producers, retailers, and traders to study and quantify … the impact of forward markets and vertical integration on prices, risk premia and retail market shares. We point out that … forward hedging and vertical integration are two separate mechanisms for demand and spot price risk diversification that both …