Article
Regulating Coopetition in an EV Charging Market
Economic Modelling
(2022)
Abstract
This paper explores the coopetitive relationship between a private firm and a utility when the utility
simultaneously competes with the firm in the output (EV charging-station) market and potentially co-
operates in the input (electricity) market through its choice of a mark-up rate on the price of electricity
supplied to the firm’s charging stations. In the absence of regulation, we find the utility chooses to self-
regulate itself (i.e., cooperate with the firm) in the input market in order to continue earning revenue from
the sale of electricity to the firm’s charging stations. We uncover the condition under which the utility
chooses not to decrease its mark-up rate in response to an increase in market demand for EV charging.
We similarly uncover the condition under which a regulator chooses a lower mark-up rate than the utility.
Numerical analysis illustrates these findings.
Keywords
- coopetition,
- duopoly,
- regulation,
- electric vehicle charging stations
Disciplines
Publication Date
2022
Citation Information
Arthur Caplan. "Regulating Coopetition in an EV Charging Market" Economic Modelling (2022) Available at: http://works.bepress.com/arthur_caplan/143/