Prices and Concentration: A U-shape? Theory and Evidence from Renewables

By Michele Fioretti, Junnan He, Jorge Tamayo

Rating

1480
Battle Count: 79

Relevance

6/10
While not directly applicable to trading, the insights on market structure and pricing in oligopolistic markets with diversified firms could inform trading strategies in energy markets or other concentrated industries.

Implementation Complexity

8/10
The theoretical model and empirical strategy are sophisticated and would require significant expertise in game theory, industrial organization, and structural estimation to implement.

Reproducibility

4/5
The paper provides detailed theoretical models and empirical strategies, but full reproducibility may require access to proprietary data from the Colombian energy market.

About this paper

Methodology: Supply Function Equilibrium. Problem types: Optimization, Market Equilibrium.

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