We use a two-stage model to determine the equilibrium capacities, generation levels and prices of a wholesale electricity market in which independent power producers (IPPs) use natural-gas (NG) and photovoltaic (PV) technologies. PV’s effective capacity is low in the morning and afternoon...

The long lead time required to add new capacity in the electricity generation industry means that daily demands are necessarily served by capacity already installed. However, in a competitive market, even if the installed capacity was designed to serve the projected demands, frequent surpluses...

Today, leading defense firms are concentrated into just two distinct blocs - those based in the US and those in Western Europe. All US defense firms and most European ones are private. Market structure may thus play an important role in determining procurement levels as well as defense policies...

Last September, the Macau government issued a Public Consultation Paper proposing the introduction of competition into generation and transmission. An analysis suggests that fully adopting this proposal may lead to less-reliable service without the compensating benefits of lower costs and rates.

Using a two-stage model describing the optimal R&D choice of firms operating in an oligopoly market for several substitute goods we predict a convex (U-shaped) relationship between competition and innovation; that is, innovation declines as a function of product market competitiveness up to a...

This paper constructs a model of firms' behavior before and after the introduction of time-of-use (TOU) pricing of electricity, encompassing optimal behavior under both flat-rate and time-of-use pricing. The model aims to be consistent, constraining those parameters not affected by time-of-use...

More than 98 percent of Israel's primary energy resources are imported, most of it as crude oil, the rest of it as coal, placing the country in a most vulnerable and awkward position. The sharp increases in crude oil prices in 1973 following the Yom Kippur War and in 1979 has increased the...

The measurement of customer outage costs has recently become an important subject of research for the electric utilities. This paper uses a stochastic dynamic model as the starting point in developing a market-based method for the evaluation of outage costs. Specifically, the model postulates...