Hemmnisse für die Vernetzungen von Wissenschaft und Wirtschaft abbauen



DIW


BERLIN


Aus den Veroffentlichungen des DIW Berlin

Claudia Salim

Access Price Regulation and Price Discrimination in Intermediate Goods
Markets

We consider a model of a monopolistic network operator who sequentially offers two-parted
access charges to symmetric downstream firms. We are particularly interested in analyzing an
alternative to current regulatory practice of prescribing access. In particular, we look at the pos-
sibility of restraining the input monopolist’s market power by endowing downstream firms with
a regulatory option: In case they disagree with the contracts proposed to them, downstream
firms can claim a regulated access price. It turns out that this form of regulation may prevent
foreclosure even though allowing for price discrimination in the intermediary market. It proves
itself more beneficial to welfare than the current practice of prescribing access prices above
marginal cost. Interestingly, even though one expects discrimination against the first mover,
non-discriminatory input prices below cost can occur when the monopolist faces the alternative
of a rather strictly cost-oriented regulated access price. Non-discrimination rules will either not
become effective or result in less optimal price levels.

Discussion Paper No. 731

October 2007

Ruud Egging, Steven A. Gabriel, Franziska Holz and Jifang Zhuang

A Complementarity Model for the European Natural Gas Market

In this paper, we present a detailed and comprehensive complementarity model for comput-
ing market equilibrium values in the European natural gas system. Market players include
producers and their marketing arms which we call “transmitters”, pipeline and storage opera-
tors, marketers, LNG liquefiers, regasifiers, tankers, and three end-use consumption sectors. The
economic behavior of producers, transmitters, pipeline and storage operators, liquefiers and
regasifiers is modeled via optimization problems whose Karush-Kuhn-Tucker (KKT) optimality
conditions in combination with market-clearing conditions form the complementarity system.
The LNG tankers, marketers and consumption sectors are modeled implicitly via appropriate
cost functions, aggregate demand curves, and ex-post calculations, respectively. The model is
run on several case studies that highlight its capabilities, including a simulation of a disruption
of Russian supplies via Ukraine.

Discussion Paper No. 732

October 2007

662


Wochenbericht des DIW Berlin Nr. 44/2007



More intriguing information

1. Estimation of marginal abatement costs for undesirable outputs in India's power generation sector: An output distance function approach.
2. The name is absent
3. Evaluating the Impact of Health Programmes
4. A Unified Model For Developmental Robotics
5. Solidaristic Wage Bargaining
6. 101 Proposals to reform the Stability and Growth Pact. Why so many? A Survey
7. The name is absent
8. The name is absent
9. Connectionism, Analogicity and Mental Content
10. The value-added of primary schools: what is it really measuring?
11. MANAGEMENT PRACTICES ON VIRGINIA DAIRY FARMS
12. The name is absent
13. HEDONIC PRICES IN THE MALTING BARLEY MARKET
14. The Interest Rate-Exchange Rate Link in the Mexican Float
15. The name is absent
16. The name is absent
17. Climate change, mitigation and adaptation: the case of the Murray–Darling Basin in Australia
18. Tastes, castes, and culture: The influence of society on preferences
19. PEER-REVIEWED FINAL EDITED VERSION OF ARTICLE PRIOR TO PUBLICATION
20. TRADE NEGOTIATIONS AND THE FUTURE OF AMERICAN AGRICULTURE