Analyzing Gas and Electric Convergence Mergers: A Supply Curve Is Worth a Thousand Words

David Hunger

Journal of Regulatory Economics, 2003, vol. 24, issue 2, 73 pages

Abstract: The recent trend toward convergence mergers between gas and electric utilities raises questions regarding merger analysis. Standard concentration measures do not capture adequately the ability of the merged firm to raise rivals' costs or impede their access to natural gas supplies. Estimating electricity supply curves for various time periods gives analysts an additional tool for predicting future market outcomes. Copyright 2003 by Kluwer Academic Publishers

Date: 2003
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