Wide variation in private insurer payment rates to hospitals and physicians across and within local markets suggests that some providers, particularly hospitals, have significant market power to negotiate higher-than-competitive prices, according to a new study by the Center for Studying Health System Change (HSC). Looking across eight health care markets--Cleveland; Indianapolis; Los Angeles; ...

We examine a competitive market in which producers and consumers are scattered around the economy, linked by a network with finite capacity, along which the good has to be delivered for consumption. A most prominent example would be the deregulated electric power market. Because of the complexity of transaction across the network, the equilibrium allocation is generally complicated. However, we...

This paper uses the framework in Wolak (2003a,b and 2007) and data on half-hourly offer curves and market-clearing prices and quantities from the New Zealand wholesale electricity market over the period January 1, 2001 to June 30, 2007 to characterize how the four large suppliers in this imperfectly competitive industry exercise market power. To accomplish this we introduce half-hourly measures...

We study the implications of the creative destruction lifecycle of innovation for asset prices. We develop a general equilibrium model of endogenous firm creation and destruction where “incremental” innovations by incumbents and “radical” innovations by entrants drive the volatility of growth prospects of the economy. Higher entry—bigger threat of displacement of incumbents by entrants—implies ...

In this research, a bidding problem for wind-power plant participating in day-ahead power market with uncertain correlated prices is studied. A new robust optimization approach considering correlation among uncertainty on the hourly developed. This results solutions lower level of over-conservatism. For purpose polyhedral set introduced. To consider clearing and value produced by wind producer ...

A cointegrated vector autoregressive (CVAR) model is estimated to determine the dynamic relationship between Nordic wholesale electricity prices and EU emissions trading scheme (EU-ETS) CO2 allowance prices. An impulse response analysis reveals that electricity prices have large short-term responses to CO2 price shocks, but that this response dampens over time. Using hourly Nordic electricity s...

In this paper a novel approach for sequential bidding on day-ahead auction markets for spot energy and power systems reserve is presented. For the spot market a relatively simple method is considered as a competitive market is assumed. For the reserve market one bidder is assumed to behave strategically and the behavior of the competitors is summarized in a probability distribution of the marke...

In this paper we examine an alternative policy scenario, where governments allow polluting …rms to trade permits in a strategic environmental policy model. We demonstrate, among other things, that with no market power in the permits market, governments of the exporting …rms do not have an incentive to under-regulate pollution in order to become more competitive. This strategic e¤ect is reversed...