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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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incentives …
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This paper studies whether institutions matter for economic performance. For this aim, we first construct a simple framework illustrating how to examine the interaction between institutions and economic performance from a different point of view. Then, using this framework, we introduce an...
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