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Liberalized electricity markets are characterized by fluctuating priceinelastic demand of non-storable electricity, often defined by a substantial market share held by one or few incumbent firms. These characteristics have led to a controversial discussion concerning the need for and the design...
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In several European merger cases competition authorities have demanded that the merging firm auctions off virtual … marginal cost. This output is sold in the market in competition with the merging firm. The paper compares sale of physical and …
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