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| Title: | | The Subtraction Rule and its Effects on Pricing in the Electricity Industry  |
| Authors: | | Elberfeld, Walter |
| Issue Date: | | 2004 |
| Series/Report no.: | | ZEW Discussion Papers 04-21 |
| Abstract: | | The paper deals with the subtraction rule, which has been proposed by the ?working group security of supply in service of the cartel offices of the federal republic and the states? as an instrument to identify improperly inflated network access charges in the electricity industry. We analyze firms? price responses and adaptations to this rule. The results suggest that the introduction of the subtraction rule would increase prices, regardless of whether network access charges are improperly inflated or not. |
| Subjects: | | Electricity market network access charges abuse of a dominant position |
| JEL: | | L43 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des ZEW ZEW Discussion Papers
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