In this paper we study the economic determinants of the inter-sectoral distribution of skilled workers and the long-run consequences of imperfect competition on growth within an R&D-based growth model with human capital accumulation. We find that steady-state growth is driven only by incentives to accumulate human capital and is independent of scale effects. In the model imperfect competition h...

Market power is the ability of a firm to raise the price of a product above its fair and competitive level. Locational market power is a special kind of market power that arises when locational advantage allows suppliers to act non-competitively. For example, in case of the electricity market, binding transmission constraints can prevent adequate competition. Transmission constraints can create...

Locational Marginal Pricing (LMP) is a method for energy pricing in deregulated power systems. Loss and congestion cause different prices for energy at load or generation buses. In this pricing method there is a different between payments of customers and revenue of generators which is called Merchandizing Surplus (MS). Independent System Operator (ISO) receives MS and generally renders it to T...

Market power refers to conditions where the providers of a service can consistently charge prices above those that would be established by a competitive market. There are many well known definitions of market power, including indices intended to quantify the degree of market concentration of energy supplies. Unfortunately, market power considerations within electric power markets require the co...

As with other commodity markets, markets for trading pollution permits have not been immune to market power concerns. In this paper, I survey the existing literature on market power in permit trading but also contribute with some new results and ideas. I start the survey with Hahn’s (1984) dominant-firm-fringe static model that I then extend to the case in which there are two or more strategic ...

This article analyzes concerns about market power and inequality in a model with multiple sectors, heterogeneous abilities, endogenous labor supply, nonlinear income taxation. Proportional markups no profit dissipation have effect on the economy, policy that reduces nonproportional markup raises (lowers) welfare when it is higher (lower) than weighted average of other markups. With proportional...

We assess how firms' incentives to operate and invest in energy storage depend on the market structure. For this purpose, we characterize equilibrium outcomes allowing for power and/or production, as well vertical integration between production. Market reduces overall efficiency through two channels: It induces an inefficient use of facilities, it distorts investment incentives. The worst outco...

Abstract The political news media play an important role in the successful working of democratic societies. In order to fulfill this role, a sufficient level journalistic quality is required. Most Western societies rely on market as means assure quality. This implies regulation sector by competition law, which may take different attitudes towards power. While it undisputed that some aspects bet...

I present a model where firms and workers set wages above the market-clearing level. Unemployment is thus generated by their exercise of market power. Because both the labor and product markets are imperfectly competitive, market power in the labor market interacts with market power in the product market. This interaction sheds new light on the effects of policy interventions on unemployment an...