I model the strategic interaction between firms, that face decisions on investment, forward contracts and spot market … quantities. For an investment decision that takes place after firms have contracted forward but before firms compete on the spot … market (medium term investment), competition becomes fierce. Thus, the efficiency gains from forward trading found by Allaz …

We introduce a model of asymmetric competition where two network operators with different investment costs may build an … operator is allowed to enter the market or not, standard access regulation leads to broader infrastructure coverage than co-investment …