Bidding behavior in the Chilean electricity market

Bustos-Salvagno, Javier

doi:10.1016/j.eneco.2015.07.003

Cited by 16 publications

(9 citation statements)

References 23 publications

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“…'Number of the competitors in the market' is considered more important factor by small firms as compared to the large firms. Small firms have less equipment and managerial staff to overcome the weak points of their firm so they believe that if the 'numbers of competitors in the market' are more then there is a decreased chance of winning a tender (Bustos-Salvagno, 2015;Oyeyipo et al, 2016). This factor is also more important for the young firms as compared to the mature firms as young firms believe if numerous competitors are participating in the industry, clients have a greater pool of firms to choose from, which gives firms with a greater reputation an upper hand and minimizes their chances of winning a project.…”

Section: Discussionmentioning

confidence: 99%

Extrinsic factors influencing the bid/no-bid decision of construction contracting firms: Impact of firm size and experience

Maqsoom

Ashraf

Choudhry

et al. 2020

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Construction contracting firms (CCFs) are functioning in a highly volatile and competitive industrial environment making it imperative to bid for the projects that can produce the most return and market share. The decision making process to bid or not is based on various factors that vary from project to project and firm to firm. The aim of this work is to analyze the impact of firm size and experience on extrinsic factors influencing the bid/no-bid decision for construction projects. The questionnaire was pilot tested and designed in three parts. The final questionnaire was sent to 300 CCFs registered with Pakistan Engineering Council (PEC) and respondents were asked to rate the factors on a Likert scale. Out of 300 questionnaires, 167 completed responses are returned representing a response rate of 56%. The collected data are then analyzed using Mann-Whitney U test through Statistical Package for Social Sciences (SPSS). Findings show the various degrees of differences between small and large, and young and mature CCFs with regard to factors influencing the bid/no-bid decision. Small firms need to overcome increasing market value and number of competitors in the market. They need to develop relationship with government officials in order to secure their bids. Mature firms need to review the payment practices of clients, politician pressure and business level of the client before entering into the bid. Availability of required material and skilled labor are of prime importance for the mature firms' success.

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Section: Discussionmentioning

confidence: 99%

Extrinsic factors influencing the bid/no-bid decision of construction contracting firms: Impact of firm size and experience

Maqsoom

Ashraf

Choudhry

et al. 2020

rdlc

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“…To be ensured that electrical power supply is in a balance, any market players responsible for unbalancing the electricity market have to compensate the require amount of costs to restore the balance which leads to reducing the incentive for driving up the electricity prices through offering a small amount of supply of electricity. In addition, current research, as well as development evidently suggest that electricity market players access limited possibilities for exercising electricity market power (Bustos-Salvagno, 2015;Erdogdu, 2013). It is also important, though power consumers do not have real-time data or information; however, there are exit and entry barriers, a limited number of energy companies serves few electricity consumers, homogeneity characteristic of electricity and the above-mentioned electricity pricing mechanisms makes this market exhibits the perfect competition market (Newbery and Greve, 2017).…”

Section: Wind Power and Swedish Electricity Market Structurementioning

confidence: 99%

Accessing the Effect of Renewables on the Wholesale Power Market

Alam

2021

IJEEP

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The purpose of this paper is to examine how rising wind energy generation (in MWh) impact the wholesale power market's volatility (in SEK) across four bidding regions in Sweden. Prior investigations show that though the increase in electricity production from wind energy lowers the average day-ahead electricity wholesale prices, however, uncertainty and volatility of market price could rise due to wind energy's intermittent nature. This study results show that Swedish power market experiences higher price volatility in long-run frequency when the generation of wind electricity increases. The reason for this high and volatile electricity price might be found from inflexible baseload power generation. The paper further suggests that volatility in the Swedish power market could be increased due to ambitious renewable electricity target by the Swedish government. The analysis concludes by providing the evidence that further adjustment in regard to the energy and regulatory policies might foster the better integration of a higher share of renewables into the power system.

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“…En lo que se refiere al suministro de largo plazo, un generador tiene la opción de firmar contratos de suministro con distribuidoras eléctricas, para clientes regulados, o con grandes consumidores, denominados clientes libres de regulación 4 . El mercado de contratos regulados, foco de la presente investigación, constituye cerca del 50% del suministro contratado de largo plazo en Chile (Bustos-Salvagno [14]). Cabe destacar que el mercado eléctrico chileno como conjunto está compuesto por cuatro sistemas que suministran energía eléctrica en el territorio continental.…”

Section: Mercado Eléctrico Chilenounclassified

“…Fabra, Montero y Reguant [15] así como Varas y Rudnick [16] utilizan información de contratos efectivamente adjudicados, ya que realizan una estimación de determinantes de precios tanto libres como regulados. Aquí, al igual que en Bustos-Salvagno [14], se concentran los esfuerzos en el mercado regulado, por lo cual si se utiliza toda la información disponible de las ofertas realizadas en licitaciones para clientes regulados, contexto en el que es necesario usar metodologías aplicadas en la literatura de subastas. El objetivo es determinar los parámetros estructurales del mercado de contratos para clientes bajo regulación de precios, utilizando regresiones econométricas con datos históricos de las licitaciones llevadas a cabo entre los años 2006 y 2014.…”

Section: Metodologiaunclassified