This paper investigates whether it is welfare enhancing to tax the output of a monopoly in order to foster cost-inefficient entry. This question is of particular concern in the energy markets dominated by cartel-like affiliations (OPEC and oil, Russia's gas exports to Europe) and the interest...

This paper investigates consumers' decisions about a (single and lumpy) conservation project accounting for uncertainty and expectations (rational versus myopic). Rational expectations take into account that the profitability of individual conservation measures will affect fuel prices (here set...