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• W2591652015 abstract "Abstract We analyze horizontal subcontracting and show how idle production facilities can reduce contracting costs by credibly protecting against hold-up. Our analysis contributes to understanding competition between power firms that increasingly use intermittent generation sources. Their unilateral incentives to invest in maintaining underused units, such as dispatchable gas-fired plants, are underrated by plant profitability indicators. From a policy perspective, decentralized strategic investment incentives reduce the possible need for centralized security of supply measures. Our welfare analysis indicates that quantity competition can lead to a lower market-clearing price than price competition." @default.
• W2591652015 created "2017-03-16" @default.
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• W2591652015 date "2017-05-01" @default.
• W2591652015 modified "2023-09-24" @default.
• W2591652015 title "Horizontal subcontracting and investment in idle dispatchable power plants" @default.
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• W2591652015 doi "https://doi.org/10.1016/j.ijindorg.2017.02.001" @default.
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