The question of third-party access to the networks has become central to the debate around the liberalisation of the European electricity markets due to the natural monopoly characteristic of the transmission network. The European Union's electricity directive provides three institutional...

This paper explores the conditions under which compliance with a social contract establishes an equilibrium in a society. It is assumed that society consists of two groups, one of which has a comparative advantage in using violence, whereas the other one has a comparative advantage in producing...