The aim of this paper is to analyze the strategic behavior of the leading firms on the Swedish wholesale electricity market. This thesis wishes to address the competition situation on the market and how the firms can manipulate the price in order to maximize the profits. The Swedish electricity market was deregulated in 1996 and the predicted outcome was that the competition on the market would increase. However, today’s market is highly vertically integrated with three dominating firms; Vattenfall, E.ON, and Fortum. Moreover, the market has similar characteristics of an oligopoly with high entry barriers, limited room for product differentiation, and limited access of information. The Herfindahl-Hirschman Index and the Lerner Index show that the wholesale electricity market is highly concentrated and that market power exists. Besides external factors that affect the electricity price, such as emission trading and the amount of water in the reservoirs, the leading firms can with their market power manipulate the price. This can be done by preventing new entrants to enter the market which has led to underinvestment in new capacity with lower production costs.

The objective of Paper [I] is to analyze potential effects on the Swedish forest sector of a continuing rise in the use of forest resources as fuel in energy generation. An increasing use of forest resources as an energy input may have effects outside the energy sector. In this paper we consider this by estimating a system of demand and supply equations for the four main actors on the Swedish roundwood market. In Paper [II], we estimate a dynamic factor demand model for the Swedish pulp industry. We find weak evidence of adjustment costs for capital. The results suggest that the user cost of capital is a significant determinant of pulp industry investments. We also find that pulp industry investments are insensitive to variations in the price of electricity. Paper [III] proposes a flexible form of adjustment cost function. An empirical illustration shows that the flexible form can detect both convex and non-convex adjustment costs. Furthermore, the flexible form permits testing for the experience effect on adjustment cost. The objective of paper [IV] is to analyze the price formation for wood fuel used by the Swedish district heating sector. According to previous research there is a significant potential for increasing the use of wood fuel in Sweden. The question raised in this paper is why this potential is not realized. According to our results we cannot reject the efficient market hypothesis for all years. The objective of Paper [V] is to test for market power on the market for biofuels. To achieve our objective we make use of the idea of Granger causality. If past values of quantity contribute significantly to the determination of price, quantity is said to Granger cause price, which we will treat as a sign of market power. According to our findings this effect is present.

Due to the sharpen regulation of the Swedish plain vanilla warrant in 2006 and the recent increase in trade among private investors, this thesis examined the informa-tion efficiency of Swedish plain vanilla warrants. This was done in three different ways. First the theoretical Black & Scholes (B&S) price was tested against the ac-tual market price. Secondly likelihood ratio test statistics was used to see whether information regarding past returns added any information to that already captured by the implied volatility (IV) generated from observed warrant market prices via the B&S model. The third method used was a comparison of the IV´s among com-parable warrants. As the regulation of the Swedish plain vanilla warrant market states that only certified issuer are allowed short calls and puts, the self adjusting price mechanism found in the option market doesn’t exist on this market. As a con-sequence of this, investors on this market is reliant of accurate ask and bid prices from the issuers. Further, the information efficiency of a capital market is of es-sence for capital allocation, price discovery and risk management. The results from all three tests rejected the information efficiency hypothesis of the sample. Thus concluding that the included warrants in this thesis are none ideally for activities such as capital allocation, price discovery and risk management.

<p>The aim of this paper is to analyze the strategic behavior of the leading firms on the Swedish wholesale electricity market. This thesis wishes to address the competition situation on the market and how the firms can manipulate the price in order to maximize the profits.</p><p>The Swedish electricity market was deregulated in 1996 and the predicted outcome was that the competition on the market would increase. However, today’s market is highly vertically integrated with three dominating firms; Vattenfall, E.ON, and Fortum. Moreover, the market has similar characteristics of an oligopoly with high entry barriers, limited room for product differentiation, and limited access of information.</p><p>The Herfindahl-Hirschman Index and the Lerner Index show that the wholesale electricity market is highly concentrated and that market power exists.</p><p>Besides external factors that affect the electricity price, such as emission trading and the amount of water in the reservoirs, the leading firms can with their market power manipulate the price. This can be done by preventing new entrants to enter the market which has led to underinvestment in new capacity with lower production costs.</p>

This dissertation proposes new methods to improve the efficiency of electricity markets with respect to market monitoring and reserve allocation. We first present new approaches to monitor the level of competition in electricity markets, a critical task for helping the markets function smoothly. The proposed approaches are based on economic principles and a faithful representation of transmission constraints. The effectiveness of the new approaches is demonstrated by examples based on medium- and large-scale electric power systems. We then propose a new system-operation model using stochastic optimization to systematically allocate reserves under uncertainty. This model aims to overcome the difficulties in both system and market operations caused by the integration of wind power, which results in a higher degree of supply uncertainty. The numerical examples suggest that the proposed model significantly lower the operation costs, especially under high levels of wind penetration. / text

Les progrès techniques qui caractérisent la révolution numérique modifient les rapports au sein de la société. Elle est sans conteste à la base d'une profonde modification du caractère de la création artistique. L'avènement de nouveaux moyens de communication de masse tels que l'Internet permettent la diffusion des oeuvres et cela sans frontières géo-temporelles. À ce contexte se superposent des prouesses techniques défiant les rêves les plus irréels. Le droit d'auteur se trouve confronté aux nouvelles techniques qui s'améliorent sans cesse. En réponse à cela, la gestion numérique des droits est apparue en tant que solution la plus appropriée: la technologie venant contrer à son tour la technologie. Cette approche a nécessairement influencé les initiatives législatives menant ainsi à une refonte du cadre légal tant en Amérique du Nord qu'en Europe. La récente vague de lois a-t-elle eu pour effet de modifier la conception du droit d'auteur ? Le droit d'auteur apparaît alors tel un instrument permettant la métamorphose économique du droit d'auteur. Le droit d'auteur se perd et se dissout non seulement par l'influence croisée avec le copyright mais notamment par la prolifération des droits au profit de personnes non auteur. Face à un tel constat, il est primordial de s'interroger sur l'opportunité économique que procure le droit d'auteur. Toutes ces réformes n'ont-elles pas eu lieu pour des enjeux financiers ? L'analyse économique s'avère indispensable afin de déterminer dans quelle mesure le droit des marchés s'en trouve affecté. Au regard de l'analyse économique, est-il possible de rendre la loi pour la protection du droit d'auteur plus optimale? En tant que propriété utile et vouée à circuler, une logique d'investissement semble dominer. Le cas de l'industrie musicale est une bonne illustration. Avec la construction d'un marché du téléchargement légal, la concurrence s'ouvre et amorce l'avènement d'un nouveau modèle d'exploitation des oeuvres. / The technical advances characterising the digital revolution do modify relations within society. This revolution is without dispute the basis of a complete change in the character of artistic creation. The arrivaI of new mass media such as the Internet allows works of art to be spread regardless of space and time boundaries. Technical miracles defying even the most unrealistic dreams are added to this context. Authors' rights are confronted to new technologies which are continually changing. In response to this, digital rights management has appeared as the most appropriate solution: it is a case of technology confronting technology. This approach has necessarily influenced legislative initiatives and led to an overhaul of the legal framework in North America as weIl as in Europe. Ras this recent wave of laws changed the conception of authors' rights? Authors' rights thus appear as an instrument for the economic metamorphosis of authors' rights. Authors' rights become lost and dissolve not only through cross influence with copyright but particularly through the proliferation of rights for the benefit of persons other than authors. In the face of such an acknowledgement, it is of the utmost importance to look into the economical opportunity offered by authors' rights. Raven't aIl these reforms been implemented for a financial stake? An economical analysis becomes essential in order to determine to what extent market law is affected. Is it possible, in regard to the economical analysis, to optimize the law for the protection of authors' rights? As useful property destined to circulate, the logic of investment appears to dominate. The case of the music industry is a prime example: as the competition opens up, a new mode! for the exploitation ofworks of art is initiated. / "Mémoire présenté à la Faculté des études supérieures en vue de l'obtention du grade de Maître en droit (L.L.M.) option Technologies de l'information"

Secondary markets have not historically possessed the characteristics necessary for market power to emerge, or effective product differentiation to be implemented. The potential effects of these characteristics on primary – secondary market interaction is generally not considered. The law of one price is expected to hold in secondary markets. By applying the hedonic technique to producer theory, and integrating the durability of the product directly into the profit maximizing conditions, potential differences in implicit prices between customer segments in the used bucket truck market are estimated. Applying weighted least squares to the hedonic equation, parameters were estimated to indicate whether differences in hedonic prices exist between customer segments in the secondary, utility construction equipment market. The hedonic approach accounted for differences in price due to physical characteristics, while underlying supply and demand conditions were accounted for using indicator variables for time. Estimated differences in the effects of physical characteristics on price, between industries, were identified using interaction terms. Results of the econometric estimation indicate that differences in physical product characteristics do not fully account for differences in price between customer segments in the secondary bucket truck market. If the law of one price can be violated in a secondary market, this could indicate market power. Future research on primary – secondary market interaction should consider the potential effects, if such market power does indeed exist.

Existing literature on the airline industry has been largely based on US airline markets due to data availability. The rest of the world, including China?s airline markets, have received relatively little attention. This thesis discusses in some detail the evolution of China's airline industry, current position and the problems faced by the Chinese carriers. In particular, it explores in depth the reasons behind the 2002 airline consolidations, which have brought about many significant changes in China's airline markets. Unlike mergers in developed countries, which might have been assessed and their effects estimated by antitrust authorities before being granted antitrust immunity, the airline mergers that swept China's airline industry in 2002 occurred with no antitrust challenge. This provides researchers with a good opportunity to study market power issues in this market. Using monthly average airfare information for China Eastern Airlines and China Southern Airlines from 2002 to 2004, the actual airfares paid by passengers were found to have significantly fallen in the post-merger period in most Chinese city-pair markets, indicating that competition was still relatively strong and that the major airlines did not seriously abuse any market power gained from the mergers. Based on a reduced form airfare equation in a panel context, the presence of Hainan Airlines appears to have had the competitive effect of suppressing the airfares charged by China Eastern and China Southern. One salient feature of China?s airline industry in the post-merger period is the greatly enhanced multimarket contact of these two major airlines. However, my finding of a negative effect of multimarket contact on airfares in China's airline markets rejects the mutual forbearance hypothesis. In the absence of an effective antitrust law, both fare wars and price collusion have been pervasive in China?s airline markets, causing concern for both airlines and consumers. Both types of conduct tend to be short-lived, but the 'competition then collusion' patterns seem to be repetitive. This observation can be explained in two ways. On the one hand, divergent interests in a particular market at any given time have made it difficult for collusive agreements to be effectively implemented and maintained. On the other hand, the lack of any antitrust intervention has allowed the carriers in China to reach price agreements through overt communication any time they thought it might be commercially helpful. Therefore, both the industrial collusion and price war cycles have not lasted for long periods of time. Using a probit model that estimates the engagement of China Eastern and China Southern in price wars and price collusion, it is found that concentration in both airports and routes did not play any important part in the occurrence of either fare wars or collusion. Multimarket contact had the effect of intensifying and spreading competition in some markets, with no obvious effects of promoting price cooperation. Although the airline mergers overall appear not to have caused seriously anticompetitive consequences, undoubtedly because most carriers were keen to expand in China's fast-growing airline markets, the underlying potential for collusive conduct still demands that a comprehensive antitrust law be adopted to control price-fixing activities, and to stop threats to competition once the airline industry reaches maturity.

Sunk costs play a central role in antitrust economics, but are often misunderstood and mismeasured. I will try to clarify some of the conceptual and empirical issues related to sunk costs, and explain their implications for antitrust analysis. I will be particularly concerned with the role of uncertainty. When market conditions evolve unpredictably (as they almost always do), firms incur an opportunity cost when they invest in new capital, because they give up the option to wait for the arrival of new information about the likely returns from the investment. This option value is a sunk cost, and is just as relevant for antitrust analysis as the direct cost of a machine or a factory.

[pt] Trabalhos recentes sugerem que as instituições financeiras brasileiras têm algum grau de poder de mercado no setor de serviços bancários. Será que elas conseguem estender esse poder para o mercado de fundos de investimento? Esta dissertação analisa os retornos e as taxas de administração dos fundos de ações no Brasil entre os anos de 2002 a 2006. Os dados revelam que os fundos administrados pelos cinco maiores bancos privados no Brasil não têm um retorno ajustado pelo risco significativamente inferior ao dos demais fundos de ações, nem cobram taxas de administração mais elevadas. A conclusão é que mesmo que os maiores bancos brasileiros tenham poder de mercado, eles não conseguem estendê-lo para o mercado de fundos de ações. / [en] Recent work suggests that Brazilian Banks have a power market in bankings services. Is it possible for these banks to extend this behavior to the equity funds market? This study analyses the brazilian funds´ returns and fees from 2002 to 2006. Our analysis shows that funds managed by the five largest Brazilian private banks don´t appear to have smaller risk adjusted returns or higher fees when compared to other funds.We conclude that even if the largest banks have a power market in Brazil, they have not been able to extendent this to the equity funds market.