Customers of network commodities face coordination problems due to adoption externalities that give rise to multiple, Pareto-ranked equilibria. We investigate the extent to which the coordination problem can be resolved by inducement schemes when agents' preferences are private information....

Customers of network commodities face coordination problems due to adoption externalities that give rise to multiple, Pareto-ranked equilibria. We investigate the extent to which the coordination problem can be resolved by inducement schemes when agents' preferences are private information....

The practice of utility demand side conservation programs, one of the most topical issues of utility management, provokes strategic reactions of consumers. As a solution of this moral hazard, optimal conservation programs are characterized when the consumers differ either with respect to their...