Narrow search
Showing 1 - 10 of 186
Cover Image
Productivity, Market Power and Capacity Utilization When Spot Markets are Complete
Eden, Benjamin - 2010
Our test of price-taking behavior looks at the choice of capacity rather than the choice of output. It is motivated by a complete spot markets model in which goods are distinguished by the selling probabilities in addition to other characteristics. When output is explained by total man-hours and...
Persistent link: https://www.econbiz.de/10013139426
Cover Image
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
Cover Image
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 …-the-equilibrium path they are supported by mixed strategies. We then investigate the efficiency properties of these equilibria, where quot …;efficiencyquot; is defined as the ratio of surplus in equilibrium relative to the first best. We show that efficiency in the worst …
Persistent link: https://www.econbiz.de/10012760481
Cover Image
Tacit Collusion in the Presence of Cyclical Demand and Endogenous Capacity Levels
Knittel, Christopher R. - 2010
We analyze tacit collusion in an industry characterized by cyclical demand and long-run scale decisions; firms face deterministic demand cycles and choose capacity levels prior to competing in prices. Our focus is on the nature of prices. We find that two types of price wars may exist. In one,...
Persistent link: https://www.econbiz.de/10012760596
Cover Image
The Value of Transmission in Electricity Markets : Evidence from a Nuclear Power Plant Closure
Davis, Lucas W. - 2014
Reliable estimates of the value of electricity transmission are critical if these heavily-regulated investments are to be made cost-effectively. In this paper, we exploit the abrupt closure of the San Onofre Nuclear Generating Station (SONGS) in February 2012. During the previous decade, SONGS...
Persistent link: https://www.econbiz.de/10013053145
Cover Image
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
Cover Image
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
Cover Image
The Competitive Effects of Transmission Capacity in a Deregulated Electricity Industry
Borenstein, Severin; Bushnell, James; 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
Cover Image
The Effects of Mergers on Prices, Costs, and Capacity Utilization in the U.S. Air Transportation Industry, 1970-84
Lichtenberg, Frank R.; Kim, Moshe - 2021
We analyze the effect of mergers on various aspects of airline performance during the period 1970-84, using a panel data set constructed by Caves et al. Estimates derived from a simple "matched pairs" statistical model indicate that these mergers were associated with reductions in unit cost. The...
Persistent link: https://www.econbiz.de/10013211662
Cover Image
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