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Absolute income mobility and the effect of parent generation inequality: An extended decomposition approach
Liss, E., Korpi, M., & Wennberg, K.
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Publications

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  • Publications

Selected publication

No evidence of counteracting policy effects on European solar power invention and diffusion
Grafström, J., & Poudineh, R.
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About

  • About us

    • About
    • Contact us

  • Media

    • News archive

  • Cooperations

    • Eli F. Heckscher Lectures

Research

  • Areas

    • Labour Market Research
    • Competitiveness Research
    • Climate and Environmental Research

  • Ongoing research

    • Working Paper Series
  • People

    • Publications

    • Publications

      • Publications

    Implicit yardstick competition between heating monopolies in urban areas: Theory and evidence from Sweden

    PublicationArticle (with peer review)
    Magnus Söderberg

    Abstract

    This article examines a novel regulatory mechanism in a setting with multiple local monopolists. The mechanism rests upon the behavioral assumption that cus- tomers form opinions about prices by comparing them with prices set by nearby mo- nopolies and that this comparison influences their behavior. In this way, an “implicit yardstick competition” emerges among monopolists although they do not operate in the same markets. We test this mechanism using a unique dataset of unregulated district heating monopolists in Sweden. We find a large effect of neighbors’ prices, which indicates that the implicit yardstick competition has a considerable disciplin- ing effect on monopolies’ pricing behavior.

    Bonev, P., Glachant, M., & Söderberg, M. (2022). Implicit yardstick competition between heating monopolies in urban areas: Theory and evidence from Sweden.Energy Economics, 109, 105927.

    Details

    Author

    Bonev, P., Glachant, M., & Söderberg, M.

    Publication year

    2022

    Published in

    Energy Economics, 109, 105927.

    Related

    Magnus Söderberg
    Professor

    magnus.soderberg@ratio.se

    Similar content

    A penalization approach for estimating inefficiency in stochastic frontier panel models
    Working paperPublication
    Tchatoka, F. D., Söderberg, M., Hakeem, M. A.
    Download
    Publication year

    2025

    Published in

    University of Adelaide, School of Economics and Public Policy Working Paper.

    Abstract

    Efficiency analysis is essential for evaluating the performance of entities that deliver essential or standardized services. The estimator proposed by Jondrow et al. (1982) is widely used in this context, but it has been criticized for several shortcomings: it tends to bias inefficiency estimates toward the mean, distorts the distribution, and misrepresents the conditional distribution of inefficiency—especially in cross-sectional data.

    Zeebari et al. (2023) propose a regularization-based alternative that aligns sample and theoretical moments; however, this method is primarily designed for cross-sectional applications and does not extend naturally to panel data.

    In response, this paper introduces a penalized mode estimator for unit inefficiency in panel data. The estimator accounts for heteroskedasticity in both inefficiency and idiosyncratic errors. A closed-form expression is derived, and Monte Carlo simulations demonstrate its superior performance compared to existing methods. An empirical application using data from electricity providers in Australia, Canada, and New Zealand highlights the practical advantages of the proposed approach.

    Scale properties and efficient network structures in the Swedish electricity distribution market
    Article (with peer review)Publication
    Söderberg, M., Vesterberg, M.
    Publication year

    2025

    Published in

    Journal of Regulatory Economics

    Abstract

    This paper examines the Swedish electricity distribution sector to highlight three key findings. First, we identify significant economies of scale among electricity distribution firms, indicating that larger firms operate more efficiently. Second, we explore alternative market structures and demonstrate that these can substantially reduce the aggregated costs of electricity distribution. Third, we use novel survey data to show that firms perceive the economic incentives for mergers to be insufficient. These findings suggest that policymakers should consider creating a regulatory environment that encourages consolidation and enhance efficiency in the sector.

    Are CEOs judged on how cost efficient their firms are?
    Article (with peer review)Publication
    Månsson, K., Qasim, M., Söderberg, M.
    Download
    Publication year

    2025

    Published in

    Energy Economics

    Abstract

    This paper investigates whether executive boards consider firm-specific inefficiencies when they change CEOs in the Swedish electricity distribution sector. Firm-level inefficiencies are calculated using data from all Swedish electricity distributors from 2001 to 2022 and a data envelopment analysis (DEA) approach.

    DEA has advantages over standard financial key performance indicators since it controls for heterogeneity in inputs and outputs. It is also frequently employed by energy regulators to calculate relative cost inefficiencies.

    Our baseline approach uses a multilevel model and investigates the relationship between inefficiency and CEO between-effects. This analysis shows that 9–15 % of the variation in inefficiency can be attributed to the CEO effect.

    The second modeling approach quantifies the CEO effect using a synthetic difference-in-differences approach, focusing on firms that have changed CEOs. The results reveal that new CEOs reduce cost inefficiency more when they succeed CEOs who were forced to leave.

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