Author page for Eric Williams




Tellus Publications (Selected)


A Better Approach to Market Power Analysis

Rich Rosen, Eric Williams

This paper shows that analyses of market power for wholesale electric markets are best done using electricity market simulation models rather than the more commonly used Hirschman Herfendahl Index (HHI). Market simulation models are more useful than HHI in determining price impacts due to the exercise of market power, since the HHI is far too simplistic to capture the dynamic nature of electricity markets or the behavior of market participants.