Equal Prices for Everybody? An Empirical Analysis of the Effects of Liberalization on Electricity Prices in Europe Using the Law of One Price
Directive 2003/54/EC of the European Commission set the ground for an integrated and liberalized electricity market in Europe. According to the law of one price the possibility for perfect arbitrage and the absence of trade restrictions lead to homogeneous goods being priced uniformly across countries. The aim of this study is to test whether the law of one price is applicable to the electricity m