Several countries have modified the structure of their Electric Energy Markets (EEM) by the introduction of various levels of competence in the generation, transmission and distribution areas, which allows the generators to sell their production at a short-term market price (or spot price). The fundamental premise of the regulation is that the global efficiency can be improved through a strong ...

This paper studies the e¤ect of captive consumers in a competitive model of nonlinear pricing. We focus on the bene…ts and drawbacks of allowing what we call market segmentation, namely, a situation where the price-quality menu o¤ered to captive consumers can di¤er from that o¤ered to consumers that are exposed to competition. We …nd that the e¤ect of market segmentation depends on the relation...

The paper presents an applied study of a multivariate AR(p) process fitted to daily data from U.S. commodity futures markets with the use of Bayesian statistics. In the first part a detailed description of the methods used is given. In the second part two BVAR models are chosen one with assumption of lognormal, the second with normal distribution of prices conditioned on the parameters. For a c...

Assortment planning, where a retailer decides which products to place on their store shelves, is one of the most fundamental decisions in retailing. Retail assortments are important drivers in consumers’ shopping decisions. With the ever increasing number of products available to retailers, category managers face a complex decision to select the “right” assortment for their categories. These as...

Experimental evidence stresses the importance of so–called social preferences for understanding economic behavior. Social preferences are defined over the entire allocation in a given economic environment, and not just over one’s own consumption as is traditionally presumed. We study the implications for competitive market outcomes if agents have such preferences. First, we clarify under what c...

This chapter addresses the economic theory of electricity markets, viewed from an idealized competitive equilibrium setting, taking into account volatility and the physical and operational constraints inherent to transmission and generation. In a general dynamic setting, we establish many of the standard conclusions of competitive equilibrium theory: Market equilibria are efficient, and average...

Buyers often search across multiple retailers or websites to learn which product best fits their needs. We study how sellers manage these search incentives through their disclosure policies (e.g. advertisements, product trials and reviews), and ask how competition affects information provision. If sellers can observe the beliefs of buyers (e.g. they can track buyers via their cookies) then, in ...

Experimental evidence stresses the importance of so–called social preferences for understanding economic behavior. Social preferences are defined over the entire allocation in a given economic environment, and not just over one’s own consumption as is traditionally presumed. We study the implications for competitive market outcomes if agents have such preferences. First, we clarify under what c...

Despite the robust tendency of laboratory markets to generate competitive outcomes, some market designs deviate persistently from competitive predictions. This essay discusses the primary drivers of supra-competitive prices that have been observed in market experiments. Trading Institutions and Market Performance. The robustness of competitive market predictions stands as one of the most impres...

W investigate differences in the dynamics of marketing decisions across geographic markets empirically. We begin with a linear-quadratic game involving forward-looking firms competing on prices and advertising. Based on the corresponding Markov perfect equilibrium, we propose estimable econometric equations for demand and marketing policy. Our model allows us to measure empirically the strategi...