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Restructuring electricity markets has enabled wholesalers to exercise market power. Using a common method of measuring competitive behavior in these markets, several studies have found substantial inefficiencies. This method overstates actual welfare loss by ignoring production constraints that...
Persistent link: https://www.econbiz.de/10012465137
U.S. airlines have lost nearly $60 billion (2009 dollars) in domestic markets since deregulation, most of it in the … that challenges the economics of deregulation. I examine some of the most common explanations among industry participants …
Persistent link: https://www.econbiz.de/10012461914
This paper examines vertical arrangements in electricity markets. Vertically integrated wholesalers, or those with long-term contracts, have less incentive to raise wholesale prices when retail prices are determined beforehand. For three restructured markets, we simulate prices that define...
Persistent link: https://www.econbiz.de/10012465139
timing of bank deregulation, we evaluate the impact of liberalizing intrastate branching restrictions on the distribution of … income. We find that branch deregulation significantly reduced income inequality by boosting the incomes of lower income …
Persistent link: https://www.econbiz.de/10012465351
While neoclassical models assume static cost-minimization by firms, agency models suggest that firms may not minimize costs in less-competitive or regulated environments. We test this using a transition from cost-of-service regulation to market-oriented environments for many U.S. electric...
Persistent link: https://www.econbiz.de/10012467686
The success of deregulation in creating a viable private rail freight system in the ?U.S. since 1979 is relatively … undisputed. Deregulation has proceeded in three ways: (i) eased rate setting restrictions; (ii) simplified merger applications … of deregulation on rail costs from those directly attributable to mergers and acquisitions. We employ a translog variable …
Persistent link: https://www.econbiz.de/10012475256
Prior to the 1990s, most electricity customers in the U.S. were served by regulated, vertically-integrated, monopoly utilities that handled electricity generation, transmission, local distribution and billing/collections. Regulators set retail electricity prices to allow the utility to recover...
Persistent link: https://www.econbiz.de/10012457553
techniques relative to matched plants that were not subject to any regulatory change. Deregulation also led to a shift toward …
Persistent link: https://www.econbiz.de/10012458556
markets. Deregulation has been accompanied by substantial market consolidation and today the three largest companies control … more than one-third of all U.S. nuclear capacity. We find that deregulation and consolidation are associated with a 10 …
Persistent link: https://www.econbiz.de/10012461317
This paper discusses contributions that industrial organization economists have made to our understanding of energy markets and environmental regulation. We emphasize the substantive contributions of recent papers while also highlighting how this literature has adopted and sometimes augmented...
Persistent link: https://www.econbiz.de/10012629455