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The Competitive Effects of Transmission Capacity in a Deregulated Electricity Industry
Borenstein, Severin; Bushnell, James; Stoft, Steven - 2021
capacity on competition among" generators. We show that there may be no relationship between the effect of a transmission line …" in spurring competition and the actual electricity that flows on the line. We then investigate the" equilibria that are … relatively small investments in transmission may yield surprisingly large" payoffs in terms of increased competition …
Persistent link: https://www.econbiz.de/10013240555
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Productivity, Market Power and Capacity Utilization When Spot Markets are Complete
Eden, Benjamin - 2010
is the elasticity of capacity with respect to fixed labor. Under competition and risk neutrality this coefficient is … reject the joint hypothesis of competition and risk neutrality. It is also argued that the coefficient of total man …
Persistent link: https://www.econbiz.de/10013139426
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Endogenous Capital Utilization and Productivity Measurement in Dynamic Factor Demand Models : Theory and an Application to the U.S. Electrical
Prucha, Ingmar R. - 2010
Studies of the firm's demand for factor inputs often assume a constant rate of utilization of the inputs and ignore the fact that the firm can simultaneously choose the level and the rate of utilization of its inputs. In particular, the literature on dynamic factor demand models has, until...
Persistent link: https://www.econbiz.de/10013139928
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Irreversible Investment, Capacity Choice, and the Value of the Firm
Pindyck, Robert S. - 2021
A model of capacity choice and utilization is developedconsistent with value maximization when investment is irreversibleand future demand is uncertain. Investment requires the fullvalue of a marginal unit of capacity to be at least as large asits full cost. The former includes the value of the...
Persistent link: https://www.econbiz.de/10013225842
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Productivity Measurement with Nonstatic Expectations and Varying Capacity Utilization : an Integrated Approach
Morrison Paul, Catherine J. - 2021
Typically measures of multifactor productivity growth have been based on a production and optimization framework that assumes all inputs are instantaneously adjustable, thus ignoring the important impacts of short run fixity of certain inputs. This paper focuses on the distinction between short...
Persistent link: https://www.econbiz.de/10013234394
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On the Economic Interpretation and Measurement of Optimal Capacity Utilization with Anticipatory Expectations
Morrison Paul, Catherine J. - 2021
This study builds on recent research giving the notion of capacity utilization clearer economic foundations. In this research optimal output Y* is defined as the minimum point on the firm's short-run average total cost curve, and capacity utilization is then computed as CU=Y/Y*, where Y is...
Persistent link: https://www.econbiz.de/10013212910
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Economic Capacity Utilization and Productivity Measurement for Multi-Product Firms with Multiple Quasi-Fixed Inputs
Berndt, Ernst R. - 2010
In this paper we develop measures of economic capacity output and economic capacity utilization for firms producing multiple outputs and having one or .ore quasi-fixed inputs. Although we produce an impossibility theorem showing that based only on the assumption of cost minimization, the concept...
Persistent link: https://www.econbiz.de/10013145300
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Excess Capacity, Monopolistic Competition, and International Transmission of Monetary Disturbances
Svensson, Lars E. O.; van Wijnbergen, Sweder - 2021
A stochastic two-country neoclassical rational expectations model with sticky prices -- optimally set by monopolistically competitive firms -- and possible excess capacity is developed to examine international spillover effects on output of monetary disturbances. The Mundell-Fleming model...
Persistent link: https://www.econbiz.de/10013243388
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Price and Capacity Competition
Acemoglu, Daron - 2010
We study the efficiency of oligopoly equilibria in a model where firms compete over capacities and prices. The motivating example is a communication network where service providers invest in capacities and then compete in prices. Our model economy corresponds to a two-stage game. First, firms...
Persistent link: https://www.econbiz.de/10012760481
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Freedom to Trade and the Competitive Process
Edlin, Aaron S. - 2011
. Inspired by the theory of the core, we explore the idea that the competitive process is the process of sellers and buyers …
Persistent link: https://www.econbiz.de/10013129134