A Supply Function Competition Model for the Spanish Wholesale Electricity Market

We model the Spanish wholesale market as a multiplant linear supply function competition model. According to the theory, the larger generators should have supply curves for each plant which are to the left of the supply curves of plants owned by smaller generators. We test this prediction for fuel plants using data from the Spanish Market Operator (OMEL) from May 2001 to December 2003. Our results indicate that the prediction of the model holds.

Market Power in the Spanish Electricity Auction

Published as an article in: Journal of Regulatory Economics, 2010, vol. 37, issue 1, pages 42-69.

Strategic Behavior and Collusion: An Application to the Spanish Electricity Market

The paper has two major contributions to the theory of repeated games. First, we build a supergame oligopoly model where firms compete in supply functions, we show how collusion sustainability is affected by the presence of a convex cost function, the magnitude of both the slope of demand market, and the number of rivals. Then, we compare the results with those of the traditional Cournot reversion under the same structural characteristics. We find how depending on the number of firms and the slope of the linear demand, collusion sustainability is easier under supply function than under Cournot competition. The conclusions of the models are simulated with data from the Spanish wholesale electricity market to predict lower bounds of the discount factors.

Asset pricing and systematic liquidity risk: an empirical investigation of the Spanish stock market

Systematic liquidity shocks should affect the optimal behavior of agents in financial markets. Indeed, fluctuations in various measures of liquidity are significantly correlated across common stocks. Accordingly, this paper empirically analyzes whether Spanish average returns vary cross-sectionally with betas estimated relative to two competing liquidity risk factors. The first one, proposed by Pastor and Stambaugh (2002), is associated with the strength of volume-related return reversals. Our marketwide liquidity factor is defined as the difference between returns highly sensitive to changes in the relative bid-ask spread and returns with low sensitivities to those changes. Our empirical results show that neither of these proxies for systematic liquidity risk seems to be priced in the Spanish stock market. Further international evidence is deserved.

Soundings: the Newsletter of the Monterey Bay Chapter of the American Cetacean Society. 1980

(PDF contains 39 pages.)

Soundings: the Newsletter of the Monterey Bay Chapter of the American Cetacean Society. 1981

Missing the April issue. (PDF has 26 pages.)

Soundings: the Newsletter of the Monterey Bay Chapter of the American Cetacean Society. 1982

(PDF contains 34 pages.)

Soundings: the Newsletter of the Monterey Bay Chapter of the American Cetacean Society. 1983

(PDF contains 112 pages.)

Soundings: the Newsletter of the Monterey Bay Chapter of the American Cetacean Society. 1984

(PDF contains 96 pages.)

Soundings: the Newsletter of the Monterey Bay Chapter of the American Cetacean Society. 1985

(PDF contains 84 pages.)

Soundings: the Newsletter of the Monterey Bay Chapter of the American Cetacean Society. 1986

(PDF contains 62 pages.)

Soundings: the Newsletter of the Monterey Bay Chapter of the American Cetacean Society. 1987

Missing November issue. (PDF contains 62 pages.)

Soundings: the Newsletter of the Monterey Bay Chapter of the American Cetacean Society. 1988

Missing July, August, October issues. (PDF contains 56 pages.)

Soundings: the Newsletter of the Monterey Bay Chapter of the American Cetacean Society. 1989

Missing June issue. (PDF contains 50 pages.)

Soundings: the Newsletter of the Monterey Bay Chapter of the American Cetacean Society. 1990

(PDF contains 118 pages.)