Price correlations are used to delineate the geographic market in two recent Danish electricity cases. They indicate that power generators hold temporally transitory and irregularly intermittent dominant positions. Calculation of the Lerner index reveals that they abused this position. The Danish Competition Authority decided to settle this case by agreement for reasons explained. We finally indicate how economics may be used pro-actively to achieve a better market design.
|Udgiver||Copenhagen Business School, CBS|
|Status||Udgivet - 2003|
|Navn||Working Paper / Department of Economics. Copenhagen Business School|