Practical Examples of Key Index Numbers Measuring Market Domination Abuse in the Electricity Sector

Sugár, András (2012) Practical Examples of Key Index Numbers Measuring Market Domination Abuse in the Electricity Sector. Hungarian Statistical Review, 90 (SN16). pp. 67-84. ISSN 0039-0690

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Abstract

The study focuses on two index number groups: the index numbers of concentration in competition law practice and the Lerner index. By means of the example of electrical energy, the study illustrates the use of index numbers, and evaluates the advantages and disadvantages of those. Primarily, provided the illustration of the power station market, the study argues that a raw analysis of data might come as misleading in drawing consequences, as a stand against the market power inherently alters the structure of the market analyzed. The study involves the effects of import and the arrangements motivating regulative competition policies and, thus, provides a more realistic picture on market power in the sector examined.

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