2005•Unpublished venueRequires access

Vertical integration in electricity markets

Mikhail Yu. Vassiliev

Abstract

The paper considers the influence of vertical integration on the competitiveness criteria of new independent transmission lines. Based on the conditions described possible pricing strategies of the network companies are analyzed. It's shown that vertical integration is the powerful factor that withstands "monopolistic behavior" and defends from wrong state regulation in electricity transmission.

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Available abstract

Key concepts: Monopolistic competition, Vertical integration, Electricity, Electric power transmission, Electricity market, Transmission (telecommunications), Industrial organization, Horizontal integration