-linear pricing schemes, specifically priority pricing contracts, as mechanisms to enhance implicit residential demand response. We … suggest a model to integrate priority pricing contracts via an aggregator as explicit demand response in capacity markets …, advocating for participation on the ‘demand’ side rather than the ‘supply’ side to prevent market distortion and better align …

who invest into production capacity, sell a near-homogeneous good, and are subject to unexpected demand shocks with … persistence. The firms either compete or collude in prices. The model shows that a reduction of demand may promote collusion … despite lowering collusive profits. This is the case when capacities are durable and a perceptible decline in demand creates …

Airline capacity utilization, or load factors, increased dramatically between 1993 and 2007, after staying fairly level … Internet to investigate and purchase airline tickets, explains this increase. We find that differences in the rate of change of … metropolitan area Internet penetration explain differences in the rate of change of airline-airport-pair load factors. Consistent …

This paper analyses the interplay of capacity utilisation, capacity constraints, demand constraints and price … reluctant to reduce prices in response to demand constraints. At the macro level, the implied capacity-utilisation Phillips … curve has a convex shape during periods of excess demand and a concave shape during periods of excess supply. Our results …