【Empirical Seminar】Prices and Concentration: A U-shape? Theory and Evidence from Renewables
2025/05/20
研討會日期 : 2025-05-20
時間 : 10:30
主講人 : Professor Junnan He (何俊南)
地點 : Conference Room B110
主持人 : Professor Chu-An Liu
演講者簡介 : Professor Junnan He received his Ph.D. in Economics from Washington University in St. Louis in 2019. He is currently an Assistant Professor at Sciences Po. His research interests are Decision Theory, Industrial Organization, and Structural Econometrics.
演講摘要 : We show that when firms compete via supply functions, transferring high-cost capacity to the largest, most efficient firm—thereby diversifying its production technologies while increasing concentration—can lower prices by prompting the leader to expand output and competitors to aggressively defend market shares. However, large transfers prove anticompetitive, as sizable capacity differences discourage price undercutting. Exploiting renewable intermittencies in Colombia's electricity market, where firms are technology-diversified, we consistently find a U-shape relationship between prices and concentration. Counterfactually reallocating 30% of competitors' high-cost capacities to the leader cuts prices 10%, while larger transfers raise them, revealing how capacity and efficiency influence market power.
