Oligopoly model reveals potential $2 billion savings for electricity consumers
The article discusses how electricity regulators in the U.S. have shifted focus from promoting competition to regulating specific market outcomes after the California energy crisis. The author explores different methods to prevent suppliers from abusing their market power, including using models of oligopoly competition. By applying an oligopoly model to California's market data, it was found that reducing supplier concentration could have saved consumers nearly $2 billion in 2000.