1 Sentences With "pivotalness"

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Standard concentration ratios have performed poorly in explaining margins in certain markets, especially electricity markets, where supply and demand must be balanced in real time. As to account for the specificities of electricity markets the specific structural measures such as the Pivotal Supplier Index and Residual Supplier Index have been proposed. The Herfindahl index and the concentration ratios focus on the market shares of companies, but measures such as the PSI and the RSI identify the "pivotalness" of companies to meeting the demand on the system. A company that is very pivotal can be said to have a potential for high market power.