In liberalized electricity markets strategic firms compete in an environment characterized by fluctuating demand and non-storability of electricity. While spot market design under those conditions by now is well understood, a rigorous analysis of investment incentives is still missing. Existing...

Uncertainty about renewable production increases the importance of sequential short-term trading. We consider a two-stage market where conventional and renewable producers compete in order to satisfy the demand of consumers. The trading in the first stage takes place under uncertainty about...

We model a spot market in a make-to-stock industry with two types of suppliers: A type 1 supplier faces stochastic contracted demand and has access to the spot market for liquidating surplus, while a type 2 supplier produces only for the spot market. We find the production quantity equilibrium...