We take advantage of the interpretation of stochastic capacity expansion problems as stochastic equilibrium models for assessing the risk exposure of new equipment in a competitive electricity economy. We develop our analysis on a standard multistage generation capacity expansion problem. We...

We take advantage of the interpretation of stochastic capacity expansion problems as stochastic equilibrium models for assessing the risk exposure of new equipment in a competitive electricity economy. We develop our analysis on a standard multistage generation capacity expansion problem. We...