We develop a theoretical model of long-run investment decisions on capacity in the context of a liberalized electricity … the level of capacity that maximizes social welfare, and compare it to a decentralized outcome. We show that in the … absence of any regulation, private investment decisions on capacity unambiguously lead to a socially sub-optimal outcome, and …

a model in which facilities can produce output at a privately known cost up to a previously-determined capacity level …. In such a model, the amount of slack in the firm is shown to be pro-cyclical. Indeed, as capacity constraints become … capacity. …

We study the optimal capacity and lifetime of landfills taking into account their sequential nature.Such an optimal … capacity is characterized by the so-called Optimal Capacity Condition.Particular versions of this condition are obtained for … two alternative settings: first, if all the landfills are to have the same capacity, and second, if each of them is …

.There are no restrictions whatsoever on the processing schedule.The main feature of the model is a capacity restriction, i … each player have an individual capacity for handling jobs, each coalition of cooperating players in fact faces a processing … problem with the coalitional capacity being the sum of the individual capacities of the members.The corresponding processing …

This paper compares how cash and in-kind transfers affect local prices. Both types of transfers increase the demand for … normal goods, but only in-kind transfers also increase supply. Hence, in-kind transfers should lead to lower prices than cash …

This Paper documents four basic facts about investment goods and investment prices. First, investment has a very …