Investment and quality decisions in common-pool networks are typically governed by rules set by a centralized agency (either a monopoly or a regulator). In network systems where competition has flourished, decentralized solutions work better than centralized ones. Rent seeking and politicization...

The objectives of this paper are to assess the progress made towards a single European wholesale electricity market by the end of 2001, and identify remaining sources of economic inefficiency. Statistical analysis of day-ahead prices, in fifteen European locations, show Nord Pool (Scandinavia),...