Vertical Separation vs. Independent Entry in the Spanish ElectricityNetwork: An Experimental Approach

摘要

We present experimental results from a series of sessions organizedusing the Power Market simulator; a software designed to realisticallyreplicate the Spanish Electricity Market. In the experiments reportedhere we compare the status quo to two alternative treatments whichrepresent alternative market structures. In one of them, labeled asvertical separation, we assume that power generating firms andelectricity distributors-end-suppliers belong to separate businessgroups. In the second, we study the effect of entry by independentend-suppliers. Both alternative scenarios dominate the status quo interms of market efficiency, whereas the latter of them dominates the former.