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We analyze the effects of the adoption of real-time pricing (RTP) of electricity when generating firms have market power. We find that an increase in con sumers on RTP contracts decreases peak prices and increases off-peak prices, increases consumer surplus (both for switching and non-switching consumers) and welfare, while decreasing industry profits, with these effects being magnified by the extent of market power. We illustrate these results by calibrating our model to the New Zealand electricity market, and find that taking into account the market power of generating firms increases the efficiency gains from RTP adoption by 41%. [ABSTRACT FROM AUTHOR]

In recent years, the unique opportunities and challenges the firms face in the digital context and how the existing strategy concerns could be applied and expanded to accommodate such challenges have started to receive closer attention from scholars. More broadly, digitization calls for a more nuanced understanding of its implications on competitive and nonmarket strategies, but the conversation between the two sides has remained less integrated. This symposium attempts to bridge the dialogue between the market and nonmarket strategies, focusing on the digitally-mediated and enhanced interactions within firms (e.g., algorithmic decision-making, platform discoverability) and the political strategies of firms to navigate the heightened societal/regulatory pressures arising from such interactions. Algorithmic Predictions, Confidence, and Reasoning Quality Author: Xi Kang; Vanderbilt U. Author: Hyunjin Kim; INSEAD Optimal Discoverability on Platforms Author: Andrei Hagiu; Boston U. Author: Julian Wright; National U. of Singapore The Non-market Effects of Market Power: Evidence from Mergers and Lobbying Author: Bo Cowgill; Columbia Business School Author: Andrea Prat; Columbia Business School Author: Tommasso Valletti; Imperial College Business School Negative Lobbying by Digital Firms and Effects on Competitors Author: Angela Soomin Ryu; Columbia Business School [ABSTRACT FROM AUTHOR]