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The Competitive Effects of Transmission Capacity in a Deregulated Electricity Industry
Borenstein, Severin; Bushnell, James B.; Stoft, Steven - 2021
In an unregulated electricity generation market, the degree to which generators in" different locations compete with one another depends on the capacity to transmit electricity" between the locations. We study the impact of transmission capacity on competition among" generators. We show that...
Persistent link: https://www.econbiz.de/10013240555
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Valuing Identity
Fryer, Roland G. <Jr.> - 2010
Affirmative action policies are practiced around the world. This paper explores the welfare economics of such policies. A model is proposed where heterogeneous agents, distinguished by skill level and social identity, compete for positions in a hierarchy. The problem of designing an efficient...
Persistent link: https://www.econbiz.de/10013135413
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Competition and the Ratchet Effect
Charness, Gary - 2010
In labor markets, the ratchet effect refers to a situation where workers subject to performance pay choose to restrict their output, because they rationally anticipate that firms will respond to higher output levels by raising output requirements or cutting pay. We model this effect as a...
Persistent link: https://www.econbiz.de/10013138400
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Competing for Attention in Financial Markets
Carlin, Bruce Ian - 2010
Competition for positive attention in financial markets frequently resembles a tournament, where superior relative performance and greater visibility are rewarded with convex payoffs. We present a rational expectations model in which firms compete for such positive attention and show that higher...
Persistent link: https://www.econbiz.de/10013142280
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An Alternative Theory of the Plant Size Distribution with an Application to Trade
Holmes, Thomas J. - 2010
paper develops an alternative theory in which industries are made up of large plants producing standardized goods and small …
Persistent link: https://www.econbiz.de/10013144154
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R&D Investments with Competitive Interactions
Miltersen, Kristian R. - 2012
In this article we develop a model to analyze patent-protected R&D investment projects when there is (imperfect) competition in the development and marketing of the resulting product. The competitive interactions that occur substantially complicate the solution of the problem since the decision...
Persistent link: https://www.econbiz.de/10013115937
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Entry, Exit, and the Determinants of Market Structure
Dunne, Timothy - 2009
Market structure is determined by the entry and exit decisions of individual producers. These decisions are driven by expectations of future profits which, in turn, depend on the nature of competition within the market. In this paper we estimate a dynamic, structural model of entry and exit in...
Persistent link: https://www.econbiz.de/10013156542
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Who Should Pay for Credit Ratings and How?
Kashyap, Anil K. - 2013
We analyze a model where investors use a credit rating to decide whether to finance a firm. The rating quality depends on unobservable effort exerted by a credit rating agency (CRA). We study optimal compensation schemes for the CRA when a planner, the firm, or investors order the rating. Rating...
Persistent link: https://www.econbiz.de/10013084208
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A Theory of the Competitive Saving Motive
Du, Qingyuan - 2013
Motivated by recent empirical work, this paper formalizes a theory of competitive savings - an arms race in household …. Relative to the empirical work, the theory can clarify a number of important questions: What determines the strength of the … conditions under which aggregate savings would go up in response to a higher sex ratio? This theory can potentially help to …
Persistent link: https://www.econbiz.de/10013084728
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Seeking Alpha : Excess Risk Taking and Competition for Managerial Talent
Acharya, Viral V. - 2013
We present a model in which managers are risk-averse and firms compete for scarce managerial talent ("alpha"). When managers are not mobile across firms, firms provide efficient compensation, which allows for learning about managerial talent and for insurance of low-quality managers. When...
Persistent link: https://www.econbiz.de/10013085052