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theory where the capacity level is given. We consider a monopoly setting as well as a duopoly setting. Our main results are …
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suppliers' profits. In the specific setting of this paper, I show that when the competition is perfect, an investment in … generate the same equilibrium outcome allocations. In contrast, when the competition is imperfect, an inter TSO investment and …
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Overlapping ownership has contrasting effects on capacity investments if duopoly firms invest sequentially. The follower’s reaction is less aggressive, but the leader acts more aggressively, either by choosing larger capacities or by shifting from accommodation to deterrence. If it shifts the...
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