Garcia, Alfredo; Reitzes, James D; Stacchetti, Ennio - In: Journal of Regulatory Economics 20 (2001) 3, pp. 223-47
In this paper, we develop a simplified oligopoly model where hydro generators engage in dynamic Bertrand competition. Each player uses a Markov strategy based on the state of water reservoirs at the beginning of each period. The replenishing of water reservoirs, which affects generators'...