In developing countries, industries are often plagued with power shortages. In response, some firms make their own electric power but most of the others do not. Why do we observe such divergent behavior in the decision to self-generate? Previous literature focuses on factor demand and marginal...

After two decades of attempts to deregulate the Indian power sector and bring in more competition, the question we are asking is: why has private investment not flooded in as expected? We analyze the problem using an economics of governance framework which suggests that various organizational...