An exploration of a strategic competition model for the European Union natural gas market

A-Tier
Journal: Energy Economics
Year: 2016
Volume: 57
Issue: C
Pages: 236-242

Authors (3)

Yang, Zaifu (University of Macau) Zhang, Rong (not in RePEc) Zhang, Zongyi (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

Following Jansen et al. (2012), we examine an unconventional Cournot model of the European Union natural gas market with three major suppliers: Russian Gazprom, Norwegian Statoil, and Algerian Sonatrach. To reflect Russia's other strategic consideration besides profit, we incorporate a relative market share into Gazprom's objective function. We prove that when Gazprom pursues the control of market share along with profit, it will be good news for consumers but bad news for its pure profit maximising rivals. We further show that by seeking a proper market share, Gazprom can achieve the same profit of a Stackelberg leader in a simultaneous move model as in the standard sequential move leader–follower model. Compared with Jansen et al.’s, our approach makes both the analysis considerably simpler and more transparent, and the model more applicable.

Technical Details

RePEc Handle
repec:eee:eneeco:v:57:y:2016:i:c:p:236-242
Journal Field
Energy
Author Count
3
Added to Database
2026-01-29