Market Power Not the Culprit in California Market's Abysmal Performance
1 December 2000
By Jonathan Falk
Does the evidence really suggest that the price volatility in California's ancillary service markets resulted from a withholding of capacity by suppliers who were excercising market power (and not simply responding to scarcity)? NERA Vice President Jonathan Falk argues that no, given the evidence, market power cannot be blamed for the California market's abysmal performance.
