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We consider competitive capacity investment for a duopoly of two distinct producers. The producers are exposed to …, we are led to a nonzero-sum timing game describing the transitions among the discrete investment stages. Working in a … quantifies the dynamic competition effects and yields insight into dynamic preemption and over-investment in a general asymmetric …
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and capacity payments on investment incentives and market concentration. While lower price caps reduce the potential for …
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We study the interdependency between two markets, where the first involves offering production capacity, while on the second actual production is sold. The key issue is that the expected product market outcome determines the opportunity cost for bidding at the capacity market while the capacity...
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Electric power is a commodity with a number of peculiarities that are often conjured when calling for shelter from competition in the electricity sector. Among those special features is the alleged difficulty or even failure of the market process to maintain security of provision in view of...
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