This paper analyzes a modified yardstick competition mechanism (MYC), where the yardstick employed consists of a tariff … basket and total costs. This mechanism has a significant information advantage: the regulator ʺonlyʺ needs to observe total … costs and output of all firms. The modified yardstick competition mechanism can ensure a socially optimal outcome when …

analysis to investment decisions of strategic firms that anticipate competition on many consecutive spot markets with … fluctuating (and possibly uncertain) demand. We study how the degree of spot market competition affects investment incentives and …