This paper studies investment incentives in the steady state of a dynamic bilateral matching market. Because of search … underinvestment on both sides of the market. But when market frictions become negligible, the equilibrium investment levels tend …

capacity and welfare by fitting it to the data of the German electricity market. -- Investment incentives ; demand uncertainty …

make human capital investment ex ante and to exert eÞort ex post. This trade-off between control and incentive thus decides …

firms' investment incentives, however. It is the purpose of the present article to study the impact of a cap and trade … mechanism on firms' investment and production decisions and to analyze the optimal design of emission trading systems in such an …

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 …