We analyze the effect of price caps on equilibrium production and welfare in oligopoly under demand uncertainty. We … find that high price caps always increase production and welfare as compared to the situation without price cap. Price caps … close to marginal cost may lead to zero production, depending on the nature of uncertainty. We characterize the optimal …

capacity and welfare by fitting it to the data of the German electricity market. -- Investment incentives ; demand uncertainty …

In liberalized electricity markets strategic firms compete in an environment characterized by fluctuating demand and … fluctuating (and possibly uncertain) demand. We study how the degree of spot market competition affects investment incentives and …

In liberalized electricity markets strategic firms compete in an environment characterized by fluctuating demand and … fluctuating (and possibly uncertain) demand. We study how the degree of spot market competition affects investment incentives and …

telecommunications is in line with micro-economic theory, which predicts an increase in efficiency and lower prices when markets are … accompanied by a strong growth in demand in the telecommunications sector. This demand side effect is absent in electricity … competition in the sector, it has to be split up into subsectors (production, transmission, distribution and supply). Competition …

telecommunications is in line with micro-economic theory, which predicts an increase in efficiency and lower prices when markets are … accompanied by a strong growth in demand in the telecommunications sector. This demand side effect is absent in electricity … competition in the sector, it has to be split up into subsectors (production, transmission, distribution and supply). Competition …