Arbeitspapier
Market power and forward prices
We construct a model of strategic behavior in sequential markets which exhibits a persistent forward price premium. On the spot market, producers wield market power while purchasers are price takers. Producers with forward commitments have less incentive to raise prices on the spot market. Purchasers are thus willing to pay a premium to producers for forward contracts. We argue that this type of forward premium is not susceptible to arbitrage by speculators on the forward market, since purchasers prefer forward contracts backed by producers.
- Sprache
-
Englisch
- Erschienen in
-
Series: IFN Working Paper ; No. 1193
- Klassifikation
-
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Contingent Pricing; Futures Pricing; option pricing
Monopoly; Monopolization Strategies
Oligopoly and Other Imperfect Markets
Energy: Demand and Supply; Prices
- Thema
-
Forward pricing
Electricity markets
Market power
Arbitrage
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Ruddell, Keith
Downward, Tony
Philpott, Andy
- Ereignis
-
Veröffentlichung
- (wer)
-
Research Institute of Industrial Economics (IFN)
- (wo)
-
Stockholm
- (wann)
-
2017
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Ruddell, Keith
- Downward, Tony
- Philpott, Andy
- Research Institute of Industrial Economics (IFN)
Entstanden
- 2017
Ähnliche Objekte (12)
Market Power, Price Adjustment, and Inflation
Competitive Imperfect Price Discrimination and Market Power
Market Specific News and Its Impact on Electricity Prices: Forward Premia
Price Rigidity and Market Power in German Retailing
The power of forward guidance and the fiscal theory of the price level
Imperfect price information, market power, and tax pass-through
Search frictions and market power in negotiated price markets
Imperfect Price Information, Market Power, and Tax Pass-Through
Price transmission and market power in modern agricultural value chains
What drives the relationship between inflation and price dispersion? Market power vs. price rigidity
Forward price, renewables and the electricity price: The case of Italy
Subsidising carbon capture. Effects on energy prices and market shares in the power market
Market Power, Price Adjustment, and Inflation
Competitive Imperfect Price Discrimination and Market Power
Market Specific News and Its Impact on Electricity Prices: Forward Premia
Price Rigidity and Market Power in German Retailing
The power of forward guidance and the fiscal theory of the price level
Imperfect price information, market power, and tax pass-through
Search frictions and market power in negotiated price markets
Imperfect Price Information, Market Power, and Tax Pass-Through
Price transmission and market power in modern agricultural value chains
What drives the relationship between inflation and price dispersion? Market power vs. price rigidity
Forward price, renewables and the electricity price: The case of Italy
Subsidising carbon capture. Effects on energy prices and market shares in the power market
Market Power, Price Adjustment, and Inflation
Competitive Imperfect Price Discrimination and Market Power
Market Specific News and Its Impact on Electricity Prices: Forward Premia
Price Rigidity and Market Power in German Retailing
The power of forward guidance and the fiscal theory of the price level
Imperfect price information, market power, and tax pass-through
Search frictions and market power in negotiated price markets
Imperfect Price Information, Market Power, and Tax Pass-Through
Price transmission and market power in modern agricultural value chains
What drives the relationship between inflation and price dispersion? Market power vs. price rigidity
Forward price, renewables and the electricity price: The case of Italy