In a two-stage oligopoly, with investment in the first stage and quantity or price competition in the second stage, there is a kind of Folk Theorem: We find (i) over-investment if the goods are substitutes and competition is in strategic substitutes, (ii) under-investment if we have either...

We propose a model of the European gas market where the risk that Russian deliveries are interrupted is endogenized. While Russia's attempts to buy considerable parts of the European downstream industry have faced strong political opposition, we argue that Russian participation in the downstream...