Journal Title
Title of Journal: J Regul Econ
|
Abbravation: Journal of Regulatory Economics
|
|
|
|
|
|
|
|
Authors: Gert Brunekreeft David Newbery
Publish Date: 2006/09/09
Volume: 30, Issue: 3, Pages: 233-
Abstract
Merchant electricity transmission investment is a practically relevant example of an unregulated investment with monopoly properties However while leaving the investment decision to the market the regulator may decide to prohibit capacity withholding with a mustoffer provision This paper examines the welfare effects of a mustoffer provision prior to the capacity choice given three reasons for capacity withholding uncertainty demand growth and preemptive investment A mustoffer provision will decrease welfare in the first two cases and can enhance welfare only in the last case In the presence of importer market power a regulatory test might be needed
Keywords:
.
|
Other Papers In This Journal:
|