This paper deals with market power and information issues in the ongoing process of the European Electricity Market. We present a regulatory game played among the key group of utilities, the customers and the regulatory authority. The development of the game allows us to state for a clear commitment to entry freedom reducing the informational strategic advantage of incumbents. As the assumption of such a commitment involves another game, we develop it and we conclude that the liberalisation of entry is also a key factor for credibility and effectiveness of flexible regulation and tariffs reduction as well.

Isabel Soares Et Al (2012). What’s Happening to the European Electricity Market?, European Research Studies Journal Volume XV Issue 4, 145-156