This paper explores the economic implications of different contract durations in markets for on-line (primary and secondary) reserve capacity in Germany with the crucial feature of separate markets for spot energy and reserve capacity provision. The analysis is based on an equilibrium model...

It is the objective of this paper to quantify the significance of fundamental factors (like rising fuel costs) and of the increasing exercise of market power on rising prices in the German wholesale electricity market. A successive MIP/LP approach was used for this. The calculations show that,...

The interaction between product market competition, R&D investment, and the financing choices of R&D-intensive firms on the development of innovative products is only partially understood. To motivate empirical hypotheses about this interaction, we develop a model which predicts that as...

Based on an analysis of cartel prosecutions since 2007, this article assesses the way the European Commission has built up its fines in practice. The fines are compared with those imposed by the European Commission over the period from 1999 to 2006. The main findings are that, while fines have...

What is the interaction between competition, R&D investments, and the financing choices of R&D-intensive firms? Motivated by existing theories, we hypothesize that as competition increases, R&D-intensive firms will: (1) increase R&D investment relative to assets-in-place that support existing...

The mainstream methods of production function estimation, such as Olley and Pakes (1996), Levinsohn and Petrin (2003), and Ackerberg et al. (2015), commonly used for markup estimation, require physical quantities of output and inputs. However, due to data limitations, most empirical work on...

The standard of proof required in merger cases has become the centre of considerable controversies and confusion following the Australian Federal Court's decision in Metcash. This paper reviews the use of counterfactuals and the inherent contradictions in adopting the real chance standard of...

In this work we estimate the market power and interconnection costs with the Lerner index on the interconnection market. Our work will focus on the hypothesis “Balanced Calling Pattern” to estimate the price elasticity of demand. Results show that operators practice full market power. Since...

Despite the remarkable growth rate in the past three decades, China has been also experiencing serious misallocation, which gradually manifests its severe impediment for further development of China's economy. By introducing the index of unit factor cost, we construct a new framework of...

Rebound effects measure the behaviorally induced offset in the reduction of energy consumption following efficiency improvements. Using both panel estimation and quantile-regression methods on household travel diary data collected in Germany between 1997 and 2009, this study investigates the...