The authors construct a model of the electric power industry which consists of two utilities faced with uncertain demand and a variety of regulatory regimes. Two technologies are considered, base-load and peaking, and the transfer of bulk electricity among utilities is permitted. The purpose of...

The author's goal is to predict whether horizontal mergers can gene rate informational advantages to firms facing a stochastic market. At the Cournot equilibrium, each nonmerging firm benefits from an informational advantage that exceeds the informational advantage (if it exists) of each merging...

When firms choose the characteristic of their products before output is produced, imperfectly competitive firms may use this characteristic strategically so as to reduce the output level produced by the rival. Using a simple two-stage duopoly model, the author demonstrates that such "strategic"...

We examine an incumbent's trade-off between the improved efficiency that business expansion facilitates and the signaling role that business expansion plays in conveying information to potential entrants about the state of demand. We demonstrate that both separating and pooling equilibria...