We explore the efficacy of price and quantity controls in a dynamic set up in which the decisions of some agents are irreversible. We demonstrate that the assumption of irreversibility improves the performance of a tax relative that of a system of tradable quotas and significantly alters the...

We consider competitive behaviour in sequential markets when current success or failure may affect the probability of future market opportunities. The analysis is conducted in a set up which may be interpreted as two private-value, sealed-bid, second-price sequential auctions. We demonstrate...

Este estudio se enmarca en el contexto de un sector eléctrico que funciona de manera adecuada, pero en una coyuntura en la que se observó un comportamiento atípico en los precios de energía eléctrica, que abrió espacio para que se presentaran discusiones válidas, entre industriales,...

Motivated by the new auction format introduced in the England and Wales electricity market, as well as the recent debate in California, we characterize bidding behavior and market outcomes in uniform and discriminatory electricity auctions. We find that uniform auctions result in higher average...

The recent debates over discriminatory versus uniform-price auctions in the UK and elsewhere have revealed an incomplete understanding of the limitations of some popular auction models when applied to real-world electricity markets. This has led certain regulatory authorities to prefer...

We consider competitive behaviour in sequential markets when current success or failure may affect the probability of future market opportunities. The analysis is conducted in a set up which may be interpreted as two private-value, sealed-bid, second-price sequential auctions. We demonstrate...

In many regulated industries labour uions are strong and there is clear empirical evidence of labour rent-sharing. We study optimal regulation in a model in which wages are determined endogenously by wage bargaining at the firm level. Compared to the case in which wages do not depend on the...