Countries that are forerunners in electricity market liberalization have encountered the problem of how to deal with market power of electricity suppliers. How to ensure competition in the electricity market is a crucial question facing Japan, which has started the liberalization process...

We build a model to analyze the Japanese-style third party access method wherein new entrants can use, for a fee, the power transmission grids of the vertically integrated electric utility companies, and we conduct some simple qualitative analysis on special cases. We draw three principal...