Market concentration in the Nordic wholesale electricity market

The purpose of this thesis was to study and compare the concentration and dominance in the Swedish and Nordic wholesale electricity markets by applying two structural measures to assess the markets: the Herfindahl- Hirschman Index and a measure for dominance. The purpose was, furthermore, to compare the two measures and examine how the measures correspond to changes in markets share distributions. The calculations were performed using data on market shares based on the production of the largest electricity producers in 2007. The result for the Swedish market was a high HHI which indicates a highly concentrated market. According to the measure of dominance, the largest firm could be said to hold a dominant position. The Nordic market was characterized by a low HHI, hence a low market concentration and there was no dominant firm. The measures responded differently to changes in market shares.Validerat; 20101217 (root