It is the goal of this work to show, how financial models can be used to price certain contracts in the electricity market in analogy to interest rate products. Such contracts are delivery contracts with retail or institutional customers. In fact, many features of electricity products exist...

Contractual inefficiencies within supply chains increase an input price above its marginal cost, therefore they are considered detrimental to consumer surplus. We argue that such inefficiencies may be beneficial to consumers in quality-differentiated markets where the "finiteness property"...

In liability lawsuits (e.g. patent infringement) a plaintiff demands compensation from a defendant and the parties often negotiate a settlement to avoid a costly trial. Liability insurance creates bargaining leverage for the defendant in this settlement negotiation. We study the characteristics...