When capital is sunk after it is invested, a host government facing heterogeneous foreign investors has a strong incentive to reduce preferential taxes over time in order to attract less eager investors while fully expropriating past investors. This induces investors to wait rather than invest...

We studied a scenario where two electricity generators compete with each other in the presence of forward market. We find that if generators are restricted to sell a fraction less than half of their total supply in the spot market, then the price of electricity falls and supply increases....