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On the evaluation of market power and market dominance: the Nordic electricity market
School of Management, Blekinge Institute of Technology. (Avdelningen för Ekonomi)
Luleå Tekniska Universitet.
2009 (Swedish)In: Energy Policy, ISSN 0301-4215, E-ISSN 1873-6777, Vol. 37, p. 3235-3241Article in journal (Refereed) Published
Abstract [en]

This paper studies different concentration and dominance measures using structural indexes used to initially screen the competitive situation in a market. The Nordic and Swedish electricity markets are used as the empirical cases. Market concentration issues in the Nordic electricity market in general and in Sweden in particular have been, at least in initial screenings, approached by the Herfindahl–Hirsch- man Index (HHI). This article uses an alternative measure to HHI, which is based on market shares of the two largest firms in the market. The results shows that only the Swedish wholesale market has a firm that can be regarded as dominant, but only during very short periods. The results from a hypothetical merger between the second and third largest company in the Swedish wholesale market shows that when the dominant position of the largest firm is reduced, by increasing the size of the second largest firm, the threshold value indicates that competition actually will increase (contradicting to the HHI).

Place, publisher, year, edition, pages
Elsevier, 2009. Vol. 37, p. 3235-3241
Keywords [en]
Market Dominance, Electricity Market, Herfindahl-Hirschman Index
National Category
Economics
Identifiers
URN: urn:nbn:se:hkr:diva-9222DOI: 10.1016/j.enpol.2009.04.014OAI: oai:DiVA.org:hkr-9222DiVA, id: diva2:515267
Available from: 2012-04-12 Created: 2012-04-12 Last updated: 2017-12-07Bibliographically approved

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Hellmer, Stefan

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CiteExportLink to record
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  • apa
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  • de-DE
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Output format
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  • text
  • asciidoc
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