Investments in generation capacity in restructured electricity systems remain a relatively unexplored subject in the … depart from the old capacity expansion representations. The first model assumes a perfect, competitive equilibrium. It is … computationally very similar to the old capacity expansion models even if its economic interpretation is different. The second model …

Both product differentiation through quality and capacity commitment have been shown to relax price competition … then commit to capacity and finally compete in price. We show that in equilibrium, firms differentiate their products less … stage where capacity are chosen. Furthermore if the cost of quality is low, capacity pre-commitment completely eliminates …

developed by Hotelling. Firms choose capacities in the first stage and then compete in price. We show that capacity … precommitment softens price competition drastically. In almost all subgame perfect equilibrium, firms behave as if they were an … integrated monopoly i.e., choose capacities which exactly cover the market, so that there is no room for price competition at all …

reconciled in a very general theoretical framework featuring firm-level heterogeneity and investment decision. Three main … elements determine the nature and the intensity of the relationship between firm-level size and investment: the shape of … operating profits with respect to size, the shape of marginal returns to investment (in terms of size) with respect to initial …

problems occur when a downstream coordinator demands relation-specific investments (equipment, cost improvements in processes …, adaptation of components to downstream processes, allocation of future capacity etc) from upstream suppliers without being able … and information asymmetry is modelled. A repeated investment-production game with coordinator commitment in supplier …

efficient? To answer the first question, we check if the group cash flow is a determinant of the investment's spending of group …

Competitive aggressiveness is analyzed in a simple spatial competition model, where each one of two firms supplies two … controlled by each firm through its manager hiring decision, in a preliminary stage of a delegation game. When competition is … effect on profitability of more intense competition. …

consumers. The regulator designs a mechanism that guarantees financing of the essential input and adequate competition in the …

There is a general presumption that competition is a good thing. In this paper we show that competition in the … competition if and only if competition leads to market unravelling. When there are a continuum of types the efficiency of … competition is less trivial. In effect monopoly is shown to provide better insurance but at the cost of driving out some agents …