Vertical integration, separation and non-price discrimination : an empirical analysis of German electricity markets for residential customers


Nikogosian, Vigen ; Veith, Tobias


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URL: https://ub-madoc.bib.uni-mannheim.de/29937
URN: urn:nbn:de:bsz:180-madoc-299375
Document Type: Working paper
Year of publication: 2011
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L1 , L5 , L9,
Subject headings (SWD): Deutschland , Elektrizitätswirtschaft ,Vertikale Konzentration , Preisdifferenzierung , Wohnimmobilien
Keywords (English): Electricity , regulation , vertical integration , legal and total unbundling , non-price discrimination
Abstract: The literature on vertical integration in markets with regulated upstream prices suggests that the integrated upstream firm might engage in non-price discrimination. Several studies provide policy recommendations derived either from case study approaches or based on theoretical modeling which addresses the unbundling issue. In this study we analyze the impact of vertical integration of retail incumbent and network operator on retail prices and upstream charges. As the vertical structure is heterogeneous across the 850 German electricity submarkets for residential customers (there exist legally unbundled, vertically integrated or fully separated firms), we use firm level data to analyze the effects of different vertical structures and regulation schemes on retail electricity prices. We find significantly higher prices in markets with vertically integrated firms compared to markets with fully separated firms. This finding could indicate non-price discrimination. Furthermore, we find no evidence that legal unbundling eliminates the incentives for non-price discrimination because the prices do not differ from prices in markets under vertical integration.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Nikogosian, Vigen ; Veith, Tobias (2011) Vertical integration, separation and non-price discrimination : an empirical analysis of German electricity markets for residential customers. Open Access Mannheim [Working paper]
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