| Empirical Study of the Power Asymmetry in the Natural Gas Market |
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Authors: Svetlana V. OREKHOVA Cand. Sc. (Econ.), Associate Professor of Enterprises Economics Dept. Yevgeny V. KISLITSYN Sr. Lecturer of Statistics, Econometrics and Information Science Dept. Abstract: The article explores the issues of the power asymmetry assessment in commodity markets and establishes the conceptual and terminological framework of the power asymmetry. The authors developed an algorithm to calculate the power asymmetry level. The method is based on the structural analysis of the industry-specific and related markets, as well as the assessment of the bargaining power level. Allowing for the distinctive characteristics of the natural gas market, the authors clarified participants and boundaries of the Russian and European markets. The authors’ method allowed conducting an empirical study of the power asymmetry level on both local markets. The analysis indicated that the Russian natural gas market is characterized by a high level of the power asymmetry, whereas the level of the asymmetry in the European market is average. The results of the study can be used by companies for making strategic decisions and by public authorities when regulating commodity markets. Keywords: COMMODITY MARKET, POWER ASYMMETRY, MARKET POWER, METHOD, MANUFACTURING INDUSTRY, NATURAL GAS MARKET, LIMITED COMPETITION For citation: Svetlana V. Orekhova, Yevgeny V. Kislitsyn. Empirical Study of the Power Asymmetry in the Natural Gas Market. Upravlenets – The Manager, 2017, no. 2(66), pp. 28–35. |
