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  • 6 - Energy-related Market Forms

  • Massimo Filippini, ETH Zürich and Università della Svizzera Italiana, Suchita Srinivasan, ETH Zürich
  • Book:
    An Introduction to Energy Economics and Policy
    Published online:
    19 December 2024
    Print publication:
    19 December 2024, pp 127-161
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  • Summary

    In this chapter, we present the most important market forms that are relevant for understanding the functioning of energy markets and energy-related markets. This presentation is introduced by a deep discussion on the concepts of economies of scale and density, that are relevant to understand these market forms. We then discuss the following market forms: monopoly, perfect competition, monopolistic competition, and oligopoly. The presentation of these market forms is also integrated with some applications in the energy sector. For example, after presenting monopolies in a general way, we describe the natural monopoly and role regulation in the electricity and gas distribution sectors. At the end of the chapter, we discuss issues in developing countries related to the topics discussed in the chapter.