The volatility of spot prices has been a notable feature of the English and Welsh Electricity Pool since its formation in 1990. This study investigates the possibility that the volatility of spot prices is strongly affected by the functioning of the contract market for electricity. This paper...

We model a two-stage duopolistic competition in a vertically differentiated ekstern market between the eastern and western firms. In the first stage firms compete in R&D, and in the second stage in prices. Consumers in eastern market are distributed uniformy according to their income, and...