This article reviews the rapidly growing literature on structural models of complementary choices. It discusses recent modeling developments and identifies promising areas for future research. Copyright Springer Science+Business Media New York 2014

When the La Niña drought hit Chile in 1998–99, the country's recently reformed electricity sector suffered a price collapse. Power outages followed—but were they inevitable? No. The electricity shortage can be blamed on the rigid price system and deficient regulatory governance. In the...