Will Electricity Market Reform Likely Reduce Retail Rates

@inproceedings{Woo2009WillEM,
  title={Will Electricity Market Reform Likely Reduce Retail Rates},
  author={Chi-Keung Woo and Jay Zarnikau},
  year={2009}
}
To win public support, proponents for electricity market reform to introduce competition often promise that the post-reform retail rates will be lower than the average embedded cost rates that would have prevailed under the status quo of a regulated monopoly. A simple economic analysis shows that such a promise is unlikely to occur without the critical assumption that the post-reform market has marginal costs below average costs. 

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