{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,3,20]],"date-time":"2026-03-20T10:36:05Z","timestamp":1774002965168,"version":"3.50.1"},"reference-count":67,"publisher":"Institute for Operations Research and the Management Sciences (INFORMS)","issue":"2","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Operations Research"],"published-print":{"date-parts":[[2026,3]]},"abstract":"<jats:p>Since the liberalization of power markets in Europe, almost all investments have required some form of subsidy, due in part to the incomplete nature of the market. In that respect, the literature has consistently shown the benefits of risk-sharing instruments to boost investments. Because of entry barriers, however, some producers today might find themselves in a dominant position. In \u201cWhen market incompleteness is preferable to market power. Insights from power markets,\u201d Ibrahim Abada and Andreas Ehrenmann investigate the impact of completing a market with financial contracts in the presence of market power. To do so, the authors formulate a set of stochastic equilibrium investment models of risk-averse agents with possibly two types of market failure: incompleteness and market power. They provide existence results and conduct a thorough numerical application inspired by the French case. Contrary to what is reported in the literature, the authors highlight conditions under which social welfare is worse off when partially completing the market with contracts in the presence of a price-making incumbent.<\/jats:p>","DOI":"10.1287\/opre.2023.0149","type":"journal-article","created":{"date-parts":[[2025,9,22]],"date-time":"2025-09-22T16:35:08Z","timestamp":1758558908000},"page":"573-595","source":"Crossref","is-referenced-by-count":1,"title":["When Market Incompleteness Is Preferable to Market Power: Insights from Power Markets"],"prefix":"10.1287","volume":"74","author":[{"ORCID":"https:\/\/orcid.org\/0000-0003-1386-5866","authenticated-orcid":false,"given":"Ibrahim","family":"Abada","sequence":"first","affiliation":[{"name":"Grenoble Ecole de Management, F-38000 Grenoble, France"}]},{"given":"Andreas","family":"Ehrenmann","sequence":"additional","affiliation":[{"name":"ENGIE, 1000 Brussels, Belgium"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"publisher","DOI":"10.5547\/01956574.39.5.iaba"},{"key":"B2","doi-asserted-by":"publisher","DOI":"10.1007\/s10107-017-1185-9"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1287\/opre.2017.1599"},{"issue":"1","key":"B4","first-page":"163","volume":"8","author":"Abada I","year":"2019","journal-title":"Econom. Energy Environment. Policy"},{"key":"B5","doi-asserted-by":"publisher","DOI":"10.1287\/opre.2019.1882"},{"key":"B6","doi-asserted-by":"publisher","DOI":"10.1006\/jeth.1993.1001"},{"key":"B7","doi-asserted-by":"publisher","DOI":"10.1016\/j.eneco.2020.104705"},{"key":"B8","doi-asserted-by":"publisher","DOI":"10.1023\/B:REGE.0000012287.80449.97"},{"key":"B9","doi-asserted-by":"publisher","DOI":"10.1111\/j.1467-6486.2006.00658.x"},{"key":"B10","doi-asserted-by":"publisher","DOI":"10.1080\/00036840802600269"},{"key":"B11","doi-asserted-by":"publisher","DOI":"10.1016\/j.rser.2015.03.033"},{"key":"B12","doi-asserted-by":"publisher","DOI":"10.1016\/j.enpol.2013.12.008"},{"key":"B13","doi-asserted-by":"publisher","DOI":"10.1016\/j.eneco.2023.106567"},{"key":"B14","doi-asserted-by":"publisher","DOI":"10.1016\/j.eneco.2024.108132"},{"key":"B15","doi-asserted-by":"publisher","DOI":"10.5547\/ISSN0195-6574-EJ-Vol20-No4-3"},{"key":"B16","doi-asserted-by":"publisher","DOI":"10.1016\/S0928-7655(97)00006-7"},{"key":"B17","volume-title":"Asset Pricing: Revised Edition","author":"Cochrane JH","year":"2009"},{"key":"B18","doi-asserted-by":"publisher","DOI":"10.1093\/oxrep\/grx041"},{"key":"B19","doi-asserted-by":"publisher","DOI":"10.5547\/2160-5890.2.2.2"},{"key":"B20","unstructured":"CRE (2022) Comission de r\u00e9gulation de l\u2019\u00e9nergie. Accessed September 11, 2025, https:\/\/www.cre.fr\/."},{"key":"B21","doi-asserted-by":"publisher","DOI":"10.1007\/s10107-013-0694-4"},{"key":"B22","doi-asserted-by":"publisher","DOI":"10.1016\/j.enpol.2017.01.029"},{"key":"B23","unstructured":"de Maere d\u2019Aertrycke G, Ehrenmann A, Ralph D, Smeers Y (2017b) Risk trading in capacity equilibrium models. Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge, Cambridge, UK."},{"key":"B24","doi-asserted-by":"publisher","DOI":"10.1016\/j.ejor.2022.07.034"},{"key":"B25","volume":"143","author":"Downward A","year":"2012","journal-title":"Oper. Res."},{"key":"B26","doi-asserted-by":"publisher","DOI":"10.1016\/j.enpol.2016.02.016"},{"key":"B27","doi-asserted-by":"publisher","DOI":"10.1016\/j.ejor.2016.10.020"},{"key":"B28","doi-asserted-by":"publisher","DOI":"10.1016\/j.dajour.2023.100234"},{"key":"B29","unstructured":"Ehrenmann A (2004) Equilibrium problems with equilibrium constraints and their application to electricity markets. PhD thesis, University of Cambridge, Cambridge, UK."},{"key":"B30","doi-asserted-by":"publisher","DOI":"10.1007\/978-1-4419-9586-5_13"},{"key":"B31","doi-asserted-by":"publisher","DOI":"10.1287\/opre.1110.0992"},{"key":"B32","doi-asserted-by":"publisher","DOI":"10.1007\/s10107-013-0692-6"},{"key":"B33","doi-asserted-by":"publisher","DOI":"10.1287\/opre.2019.1958"},{"key":"B34","doi-asserted-by":"publisher","DOI":"10.1111\/j.1753-0237.2008.00148.x"},{"key":"B35","doi-asserted-by":"publisher","DOI":"10.1016\/j.orl.2017.10.011"},{"key":"B36","doi-asserted-by":"publisher","DOI":"10.1016\/j.enpol.2013.07.052"},{"key":"B37","doi-asserted-by":"publisher","DOI":"10.5547\/2160-5890.2.2.4"},{"key":"B38","doi-asserted-by":"publisher","DOI":"10.1016\/j.jup.2010.06.001"},{"key":"B39","doi-asserted-by":"publisher","DOI":"10.1016\/j.enpol.2015.12.016"},{"key":"B40","doi-asserted-by":"crossref","unstructured":"Joskow PL (2006) Competitive electricity markets and investment in new generating capacity. Working Paper No. 06-14, AEI-Brookings Joint Center, Washington, DC.","DOI":"10.2139\/ssrn.902005"},{"key":"B41","doi-asserted-by":"publisher","DOI":"10.1016\/j.epsr.2022.108082"},{"key":"B42","doi-asserted-by":"publisher","DOI":"10.1016\/j.enpol.2007.12.012"},{"key":"B43","volume-title":"Theory of Incomplete Markets","volume":"1","author":"Magill M","year":"2002"},{"key":"B44","doi-asserted-by":"publisher","DOI":"10.1016\/j.ejor.2012.08.023"},{"key":"B45","doi-asserted-by":"publisher","DOI":"10.5547\/01956574.39.SI2.omas"},{"key":"B46","doi-asserted-by":"publisher","DOI":"10.1017\/CBO9780511607950"},{"key":"B47","doi-asserted-by":"publisher","DOI":"10.1016\/j.eneco.2004.12.001"},{"key":"B48","doi-asserted-by":"publisher","DOI":"10.5547\/ISSN0195-6574-EJ-Vol16-No3-2"},{"key":"B49","doi-asserted-by":"publisher","DOI":"10.1016\/j.enpol.2015.10.028"},{"key":"B50","doi-asserted-by":"publisher","DOI":"10.1016\/j.eneco.2017.09.020"},{"key":"B51","doi-asserted-by":"publisher","DOI":"10.1016\/j.enpol.2016.03.047"},{"key":"B52","doi-asserted-by":"publisher","DOI":"10.1016\/j.rser.2018.04.025"},{"key":"B53","doi-asserted-by":"publisher","DOI":"10.1016\/j.tej.2005.10.003"},{"key":"B54","doi-asserted-by":"publisher","DOI":"10.1007\/s10107-015-0972-4"},{"key":"B55","doi-asserted-by":"crossref","unstructured":"Ralph D, Smeers Y (2011) Pricing risk under risk measures: An introduction to stochastic-endogenous equilibria. Technical report, Cambridge Judge Business School, University of Cambridge, Cambridge, UK.","DOI":"10.2139\/ssrn.1903897"},{"key":"B56","doi-asserted-by":"publisher","DOI":"10.1137\/110851778"},{"key":"B57","doi-asserted-by":"publisher","DOI":"10.21314\/JOR.2000.038"},{"issue":"1","key":"B58","volume":"18","author":"Rockafellar RT","year":"2013","journal-title":"Surveys Oper. Res. Management Sci."},{"key":"B59","unstructured":"RTE (2022) Bilan electrique 2022. https:\/\/www.rte-france.com."},{"key":"B60","doi-asserted-by":"publisher","DOI":"10.1016\/j.epsr.2008.02.008"},{"key":"B61","doi-asserted-by":"publisher","DOI":"10.1509\/jim.11.0119"},{"key":"B62","doi-asserted-by":"publisher","DOI":"10.1007\/s11081-016-9310-9"},{"key":"B63","volume-title":"Equilibrium Problems with Equilibrium Constraints: Stationarities, Algorithms, and Applications","author":"Su C-L","year":"2005"},{"key":"B64","doi-asserted-by":"publisher","DOI":"10.1111\/joie.12186"},{"key":"B65","doi-asserted-by":"publisher","DOI":"10.1257\/000282803321947461"},{"key":"B66","doi-asserted-by":"publisher","DOI":"10.1016\/j.apenergy.2017.06.010"},{"key":"B67","doi-asserted-by":"publisher","DOI":"10.1016\/j.jclepro.2018.08.027"}],"container-title":["Operations Research"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/pubsonline.informs.org\/doi\/pdf\/10.1287\/opre.2023.0149","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2026,3,20]],"date-time":"2026-03-20T08:11:12Z","timestamp":1773994272000},"score":1,"resource":{"primary":{"URL":"https:\/\/pubsonline.informs.org\/doi\/10.1287\/opre.2023.0149"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026,3]]},"references-count":67,"journal-issue":{"issue":"2","published-print":{"date-parts":[[2026,3]]}},"alternative-id":["10.1287\/opre.2023.0149"],"URL":"https:\/\/doi.org\/10.1287\/opre.2023.0149","relation":{},"ISSN":["0030-364X","1526-5463"],"issn-type":[{"value":"0030-364X","type":"print"},{"value":"1526-5463","type":"electronic"}],"subject":[],"published":{"date-parts":[[2026,3]]}}}