The buyer's market structure effect on equilibrium price of coal

Abstract

As the prices of coal continued to rise, the business difficulties of coal-fired power plants have caused widespread concern. A lot of research literature focused on interpretation of this result from a policy perspective, while ignoring the structural causes of their market transactions. Using bargaining model, this paper analyze the impact of the Buyer's market structure adjustment that the unified purchase of coal-fired power plants on the equilibrium price of coal, point: coal-fired power plants adopt a unified purchase strategy can effectively reduce the equilibrium price of coal; The conclusion is conducive to coal-fired power plants effective improving the current coal market competition in the passive position by use of market means and policy tools, inhibiting coal costs and active controlling of business loss; not only made new ways for coal-fired power plants consciously use market means to control the cost of coal purchases, but also provides a new way of thinking for the government effectively address the “coal-power dispute” within the framework of a market economy.