This paper presents a long run analysis of industry behavior allowing for entry and exit, and cost heterogeneity among firms. Treating the number of firms as endogenous provides linkages between firms’ conduct (reflecting the exercise of market power) and market structure. In steady state equilibrium, the implications of cost structure for market equilibrium price, firms’ conduct and industry c...

this paper expands a model different from existing models to analyze the cost and benefit of areinforced concrete solar chimney power plant (rcscpp) built in the desert regions of iran.based on the model and some assumptions for values of parameters, this paper calculates totalnet present value (tnpv) and the minimum electricity price in each phase by dividing the wholeservice period into four ...

This paper revisits the possibility of controlling the power system entirely by means of price signals. It expands on notions introduced in an earlier paper and addresses several unresolved issues: problems with linear cost structures, response delays, varying costs, market power and stability problems caused by market/system interactions. The results suggest that control by price can, in fact,...

Market power refers to the ability of sellers or buyers to exert a perceptible control over market outcomes that enables them to attain higher individual welfare levels than they would achieve under competitive market conditions. In traditional microeconomic analysis, market power is deened in terms of price and quantity decisions. Market power is said to exist when sellers or buyers have power...

This paper revisits the possibility of controlling the power system entirely by means of price signals. It expands on notions introduced in an earlier paper and addresses several unresolved issues: problems with linear cost structures, response delays, varying costs, market power, and stability problems caused by market/system interactions. The results suggest that control by price can, in fact...

Models formulated as complementarity problems have been applied previously to assess the potential for market power in transmission-constrained electricity markets. Here, we use the complementarity approach to simulate the interaction of pollution permit markets with electricity markets, considering forward contracts and the operating reserve market. Because some power producers are relatively ...

This paper proposes a pricing system for power system security in deregulated electricity market that includes voltage stability constraint in a multi-objective OPF problem. The OPF maximizes social benefit, as well as the distance from the voltage-collapse point. While pricing system security, ancillary service such as reactive power has been included. Effect of N–1 contingency on pricing is a...

We show that when health care providers have market power and engage in Cournot competition, a competitive upstream health insurance market results in over-insurance and over-priced health care. Even though consumers and firms anticipate the price interactions between these two markets - the price set in one market affects the demand expressed in the other - Pareto improvements are possible. Th...