Production inflexibility together with product price uncertainty creates price risk, which is a potentially important factor for firms' liquidity management. One industry for which price risk can be measured is the electricity producing industry. We use data on hourly electricity prices in 41...

The high volatility of electricity markets gives producers and retailers an incentive to hedge their exposure to electricity prices. This paper studies how welfare and investment incentives are affected when markets for derivatives are introduced, and to what extent this depends on market...

Production inflexibility together with product price uncertainty creates price risk, which is a potentially important factor for firms' liquidity management. One industry for which price risk can be measured is the electricity producing industry. We use data on hourly electricity prices in 41...