Vertical integration and capacity investment in the electricity sector

B-Tier
Journal: Journal of Economics & Management Strategy
Year: 2022
Volume: 31
Issue: 1
Pages: 193-226

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine the incentives for and the effects of vertical integration in the electricity sector. We find that vertical integration often reduces retail prices and increases industry capacity investment, consumer surplus, and total welfare. Unilateral vertical integration often is profitable, and so arises in equilibrium. However, ubiquitous vertical integration can reduce aggregate industry profit.

Technical Details

RePEc Handle
repec:bla:jemstr:v:31:y:2022:i:1:p:193-226
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-29