Rendez-vous marketing avec le professeur Junnan He

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Le Département de marketing de FSA ULaval a le plaisir de vous convier à une présentation du professeur Junnan He, de Sciences Po, en France. Il présentera sa recherche intitulée Prices and Concentration: A U-shape? Theory and Evidence from Renewables.

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Résumé

This research identifies a non-monotonic, U-shaped relationship between market concentration and equilibrium prices within industries characterized by heterogeneous production technologies. Using high-frequency data from Colombia’s electricity sector, the study shows that strategically reallocating marginal capacity to an efficient market leader can reduce prices by approximately 10%. The mechanism behind this counterintuitive finding lies in the incentive alignment created by technology diversification. In periods of low demand, the diversified leader is incentivized to aggressively expand output and undercut competitors. Conversely, during peak demand, the acquired capacity serves as a strategic buffer to defend market share against price spikes. However, the authors find that excessive consolidation eventually yields anti-competitive outcomes: as the competitive fringe is eroded, the leader’s dominance eliminates rivals’ capacity for aggressive responses, thereby driving up prices. These insights suggest that rigid regulatory caps on firm scale may inadvertently stifle the technological diversification essential for achieving a stable, cost-effective energy transition.