We compare investments in generating capacities of an integrated monopolist with the aggregate investments of two vertically integrated competing firms. The firms invest in their capacity and fix the retail price while electricity demand is uncertain. The wholesale price is determined in a unit...

This paper develops a two-country model of a vertically differentiated duopoly that spans two countries which are not integrated without additional costs. Equilibrium qualities, prices, profits, and consumer's surplus are compared when (1) minimum quality standards are identical and (2)...