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We examine electricity market reform in Brazil: from the 1990s till 2004 the largely hydro-powered market cleared using a market mechanism, and in March 2004 reformed to a single buyer structure. We model monthly log price differences using a two-state Markov Switching model, allowing water...
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This paper studies the welfare effects of wholesale price discrimination between downstream firms operating under … may lower productive efficiency. Therefore, price discrimination increases welfare if regulation is the dominant source of … cost differences. This provides a novel welfare rationale for exempting wholesale markets from the recent ban on geo …
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We study a conflict of interest faced by universal banks that conduct proprietary trading alongside their retail banking services. Our dataset contains the stock holdings of each and every German bank and of their corresponding retail clients. We investigate (i) whether banks deliberately push...
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