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analysis of investment incentives is still missing. Existing models, as the peak-load-pricing approach, analyze welfare optimal … fluctuating (and possibly uncertain) demand. We study how the degree of spot market competition affects investment incentives and … prices strictly decrease investment incentives of strategic firms. The reduction of investment incentives can be so intense …
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This paper analyzes the determinants of governance transparency. In our model, entrepreneurs optimally decide the precision of their earning reporting by trading off the possibility of expropriating profits against the capacity to attract external funding.We find that information is only...
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