We propose nuclear capacity auctions as a means to improve the incentives for investing in nuclear power. A properly … power was socially optimal. In particular, capacity auctions open the market for large-scale entry by outside firms … power to replace old reactors. -- Capacity auctions ; investments ; market power ; nuclear power ; virtual power plants …

This paper analyses the incentives for collusion when an industry is regulated by means of yardstick competition. The … unable to communicate later. It is shown that optimal collusion-proof regulation demands more high-powered (low …-powered) incentives to high-productivity (low-productivity) firms than prescribed by the second-best contract. Collusion is costly to …