In this paper the article “The fall in British electricity prices: market rules, market structure, or both?” from Natalia Fabra and Juan Toro will be summarized first, mentioning the argumentation concerning their research and the contribution of the findings to theoretical or empirical knowledge. Subsequently, conclusions made in the article “How sweet it is” by Dennis W. Carlton and Jeffrey M. Perloff, are examined stressing the theoretical model of performance measurement with regard to the Lerner Index which both papers are based on.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Summary of a Selected Economic Article
- Relation of the Article and the Underlying Economic Concept
- Conclusion
- List of References
- List of Abbreviations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper summarizes the article "The fall in British electricity prices: market rules, market structure, or both?" by Natalia Fabra and Juan Toro, analyzing its argumentation and contribution to economic knowledge. It then explores the theoretical model of performance measurement using the Lerner Index, drawing on insights from Dennis W. Carlton and Jeffrey M. Perloff's article "How sweet it is".
- Impact of market rules and structure on electricity prices in the UK
- Analysis of the New Electricity Trading Arrangements (NETA) and its effects
- Application of the Lerner Index in performance measurement
- Relationship between market concentration, regulatory interventions, and price dynamics
- Exploration of alternative explanations for price decline in the British electricity market
Zusammenfassung der Kapitel (Chapter Summaries)
The paper begins with an introduction outlining the focus and methodology of the study. The second chapter presents a detailed summary of the article by Fabra and Toro, discussing the argumentation regarding the relationship between market rules, market structure, and market power in the British electricity market. The chapter highlights the regulatory changes brought about by NETA and their impact on market dynamics. It also examines competing views on the causes of the decline in electricity prices, contrasting the perspectives of J. Bower and D. Newberry with those of J. Evans and R. Green.
Fabra and Toro's conclusion emphasizes the potential influence of both regulatory interventions and concentration decrease on price dynamics. The paper concludes by examining the theoretical framework of performance measurement through the Lerner Index as presented by Carlton and Perloff, further solidifying the theoretical underpinnings of the study.
Schlüsselwörter (Keywords)
The core keywords and focus topics include: British electricity market, market rules, market structure, market power, New Electricity Trading Arrangements (NETA), Lerner Index, performance measurement, regulatory interventions, concentration decrease, price dynamics, asset divestitures, imports, excess capacity, pricing agreements, theoretical model.
- Quote paper
- Dipl.-Kffr. Nadine Wolf (Author), 2005, Performance Measurement, Munich, GRIN Verlag, https://www.grin.com/document/58434
