While liberalization in energy markets has been a widely successful process all over the world, incumbents often still hold a dominant position. Thus, electricity wholesale markets are subject to market…
The Danube Region exhibits very wide socio-economic disparities. It covers some of the most successful but also some of the poorest regions in the EU. In order to take this heterogeneity into account, we define…
We consider the interaction between an incumbent firm and a potential entrant, and examine how this interaction is affected by demand fluctuations. Our model gives rise to procyclical entry, prices, and…