Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74999
Authors: 
Zarnic, Ziga
Year of Publication: 
2010
Series/Report no.: 
LICOS Discussion Paper 261
Abstract: 
This paper presents an ex-post empirical analysis of the impact of European electricity mar- ket refirms on markups ofirms. The working hypothesis is that further economic integration would bring competition into electricity markets re ected by lower markups of electricityfirms. The results show that refirms have gradually reduced the markups, but the markup premium of incumbentfirms is on average larger than theoretical models would predict under e ective economic integration. Considering regional proximity and heterogeneity ofirms along the supply chain, the results suggest that better market access and cross-border arbitrage disci- plined the markups, but have not led to competitive market outcomes due to prevailing market concentration and insufficient unbundling of transmission and distribution channels.
Subjects: 
Economic integration
electricity rms
EU
price-cost margins
service market regulation
JEL: 
F10
L11
L51
L94
Document Type: 
Working Paper

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