There is ample empirical evidence documenting that large firms set significantly lower prices than smaller, capacity-constrained, firms. This paradoxical in light of the standard theoretical result charge higher small models price competition with capacity constraints. We argue private information about constraints can account for this puzzle. provide concavity conditions on demand and type dis...

In this paper, we provide a real options model framing prosumers’ investment in photovoltaic plants. This is presented Smart Grid context where the exchange of energy among prosumers possible. We determine optimal size installations based on influence self-consumption profiles prosumers. calibrate using figures relative to Northern Italy market and investigate decision allowing for different pr...

CLIMATE POLICY 9 (2009) 612–633 This article assesses the long-term economic and climatic effects of introducing price caps and price floors in hypothetical global climate change mitigation policy. Based on emission trends, abatement costs and equilibrium climate sensitivity from IPCC and IEA reports, this quantitative analysis confirms that price caps could significantly reduce economic uncert...

The preference between public and private negotiations for a buyer who sequentially visits two suppliers is examined. It is shown that the buyer weakly prefers to conduct private negotiations in order to create strategic uncertainty about the trade history. With substitute goods, such uncertainty is valuable only when price offers have short expiries that prevent a head-to-head supplier competi...