This paper looks into various models that address strategic behavior in the supply of gas by the Mexican monopoly Pemex. The paper has three very strong technical results. First, the netback pricing rule for the price of domestic natural gas (based on a Houston benchmark price) leads to...

Este ensayo considera la regulacion de la determinacion de los precios del gas licuado de petroleo en Mexico. Se establece un modelo que incluye toda la informacion esencial para la determinacion de los precios y se derivan las relaciones que deberian existir entre los precios en Mexico y los de...

In 1997, the Comisión Reguladora de Energía of Mexico implemented a netback rule for linking the Mexican natural gas price to the Texas price. At the time, the Texas price reflected a reasonably competitive market. Since that time, there have been dramatic increases in the demand for natural...