Universität zu Köln

Lorenczik, Stefan and Panke, Timo (2016). Assessing market structures in resource markets - An empirical analysis of the market for metallurgical coal using various equilibrium models. Energy Econ., 59. S. 179 - 188. AMSTERDAM: ELSEVIER SCIENCE BV. ISSN 1873-6181

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Abstract

The prevalent market structures found in many resource markets consist of high concentration on the supply side and low demand elasticity. Market results are therefore frequently assumed to be an outcome of strategic interaction between producers. Common models to investigate the market outcomes and underlying market structures are games representing competitive markets, strategic Cournot competition and Stackelberg structures that take into account a dominant player acting first followed by one or more players. We add to the literature by expanding the application of mathematical models and applying an Equilibrium Problem with Equilibrium Constraints (EPEC), which is used to model multi-leader-follower games, to a spatial market Using our model, we investigate the prevalent market setting in the international market for metallurgical coal between 2008 and 2010, whose market characteristics provide arguments for a wide variety of market structures. Using different statistical measures to compare model results with actual market outcomes, we find that two previously neglected settings perform best: First, a setting in which the four largest metallurgical coal exporting firms compete against each other as Stackelberg leaders, while the remainders act as Cournot followers. Second, a setting with BHPB acting as sole Stackelberg leader. (C) 2016 Published by Elsevier B.V.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Lorenczik, Stefan UNSPECIFIED UNSPECIFIED UNSPECIFIED Panke, Timo UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-263659
DOI:	10.1016/j.eneco.2016.07.007
Journal or Publication Title:	Energy Econ.
Volume:	59
Page Range:	S. 179 - 188
Date:	2016
Publisher:	ELSEVIER SCIENCE BV
Place of Publication:	AMSTERDAM
ISSN:	1873-6181
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language NATURAL-GAS MARKET; SPATIALLY SEPARATED MARKETS; COMPLEMENTARITY MODEL; ELECTRICITY MARKETS; COMPETITION; BEHAVIOR; TRADE Multiple languages Economics Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/26365