Sequential Markets, Market Power, and Arbitrage
研究了不完全竞争和套利受限下序贯市场中的策略行为，利用伊比利亚电力市场微观数据验证模型，发现套利不一定提升福利，可能增加无谓损失。
We develop a framework to characterize strategic behavior in sequential markets under imperfect competition and restricted entry in arbitrage. Our theory predicts that these two elements can generate a systematic price premium. We test the model predictions using microdata from the Iberian electricity market. We show that the observed price differences and firm behavior are consistent with the model. Finally, we quantify the welfare effects of arbitrage using a structural model. In the presence of market power, we show that full arbitrage is not necessarily welfare-enhancing, reducing consumer costs but increasing deadweight loss.