Dynamic Competition and Arbitrage in Electricity Markets: The Role of Financial Players

• 成果类型: Article
• 署名作者: Mercadal, Ignacia
• 署名单位: State University System of Florida; University of Florida
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20190276
• 发表日期: 2022
• 页码: 665-699
• 关键词: structural-change; price wars; inefficiencies; tests

摘要

I study the effects of financial players who trade alongside physical buyers and sellers in electricity markets. Using detailed firm-level data, I examine physical and financial firrns' responses to regulation that exogenously increased financial trading. I show that the effect of speculators on generators' market power depends on the kind of equilibrium they are in. I develop a test of the null of static Nash equilibrium and reject it. To implement the test, I present a new method to define markets using machine-learning tools. I find that increased financial trading reduced generators' market power and increased consumer surplus.