Working Paper No. 1191

Cournot Competition in Wholesale Electricity Markets: The Nordic Power Exchange, Nord Pool

Published: November 21, 2017Pages: 26Keywords: Cournot competition; Market design; Market performance; Nord Pool; Walrasian auction; Wholesale electricity market JEL-codes: D22; D43; D44; D40

Cournot Competition in Wholesale Electricity Markets: The Nordic Power Exchange, Nord Pool Erik Lundin and Thomas Tangerås


Horizontal shifts in bid curves observed in wholesale electricity markets are consistent with Cournot competition. Quantity competition reduces the informational requirements associated with evaluating market performance because the markups of all producers then depend on the same inverse residual demand curve instead of one for each firm.

We apply the model to the day-ahead market of the Nordic power exchange, Nord Pool, for the years 2011–2013. Results suggest that mark-ups were 8–11 percent. We find some support for the hypothesis that the division of Sweden into price areas in 2011 increased the exercise of market power.

Erik Lundin

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Mob: +46 70 752 5847
erik.lundin@ifn.se

Thomas Tangerås

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Ph: +46 8 665 4526
Mob: +46 70 727 5448
thomas.tangeras@ifn.se

Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective

Pages-from-2019-Calmfors-Gassen---Integrating-Immigrants-into-the-Nordic-Labour-Markets.gif

Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

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