Market Efficiency and Market Power in Vietnam Competitive Generation Market

Tran Dang Khoa

Abstract


Market efficiency and market power are two major aspects in studying any type of market. Most of researches concentrated on either market power or market inefficiency rather than two in combination. In this study, the Vietnam Competitive Generation Market (VCGM) which has been operated from 2012 as a platform for day ahead competitive trading of electricity in Vietnam is analyzed for market efficiency and market power analysis to determine market performance. From empirical testing, evidence of market inefficiency is found. In addition, market power is also revealed by studying of the bidding behaviour of the biggest generating company.

Keywords: Market Efficiency, Market Power, VCGM.

JEL Classification: Q4


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