Looking for Trouble

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Abstract
This chapter describes the methods that have traditionally been applied as screens for competitiveness problems in the electricity industry, as well as some of the alternatives that appear to be much better suited to restructured electricity markets in the U.S. It evaluates the market impact of a more competitive industry structure on the California market during the summer of 2000 using oligopoly models. The findings indicate that it is premature for policymakers to throw up their hands and abandon attempts at structural solutions to electricity market competition.

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