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dc.contributor.authorAïd, René
dc.contributor.authorLi, Liangchen
dc.contributor.authorLudkovski, Michael
dc.date.accessioned2019-10-11T13:39:35Z
dc.date.available2019-10-11T13:39:35Z
dc.date.issued2017-11
dc.identifier.issn0165-1889
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/20083
dc.language.isoenen
dc.subjectCapacity expansionen
dc.subjectContinuous-time games of timingen
dc.subjectNon-zero-sum stopping gamesen
dc.subjectPower generation investmentsen
dc.subject.ddc338en
dc.subject.classificationjelC.C7.C73en
dc.subject.classificationjelD.D4.D43en
dc.subject.classificationjelL.L1.L11en
dc.subject.classificationjelL.L9.L94en
dc.subject.classificationjelQ.Q4.Q40en
dc.titleCapacity Expansion Games with Application to Competition in Power Generation Investmentsen
dc.typeArticle accepté pour publication ou publié
dc.description.abstractenWe consider competitive capacity investment for a duopoly of two distinct producers. The producers are exposed to stochastically fluctuating costs and interact through aggregate supply. Capacity expansion is irreversible and modeled in terms of timing strategies characterized through threshold rules. Because the impact of changing costs on the producers is asymmetric, we are led to a nonzero-sum timing game describing the transitions among the discrete investment stages. Working in a continuous-time diffusion framework, we characterize and analyze the resulting Nash equilibrium and game values. Our analysis quantifies the dynamic competition effects and yields insight into dynamic preemption and over-investment in a general asymmetric setting. A case-study considering the impact of fluctuating emission costs on power producers investing in nuclear and coal-fired plants is also presented.en
dc.relation.isversionofjnlnameJournal of Economic Dynamics & Control
dc.relation.isversionofjnlvol84en
dc.relation.isversionofjnldate2017-11
dc.relation.isversionofjnlpages31en
dc.relation.isversionofdoi10.1016/j.jedc.2017.08.002en
dc.relation.isversionofjnlpublisherElsevieren
dc.subject.ddclabelEconomie industrielleen
dc.relation.forthcomingnonen
dc.relation.forthcomingprintnonen
dc.description.ssrncandidatenonen
dc.description.halcandidateouien
dc.description.readershiprechercheen
dc.description.audienceInternationalen
dc.relation.Isversionofjnlpeerreviewedouien
dc.relation.Isversionofjnlpeerreviewedouien
dc.date.updated2019-09-23T08:46:24Z
hal.person.labIds163511
hal.person.labIds534729
hal.person.labIds534729
hal.identifierhal-02313872*


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