Purpose: The purpose of this paper is to analyze the role of industrial self-supply in the transition process from centralized energy generation based on fossil fuels and nuclear power to decentralized supply based on renewable energies in the Bavarian electricity system....

We study optimal incentive contracts offered to a research and development (R&D) manager, who can propose an innovative project and is in charge of conducting this project. The manager has private information about the project profitability and he exerts unobservable levels of different kinds of...