In current power markets, the bulk of electricity is sold wholesale and transported to consumers via long-distance transmission lines. Recently, decentralized local power markets have evolved, often as isolated networks based on solar generation. We analyze strategic pricing, investment, and welfare in local power markets. We show that local power markets with peer-to-peer trading are competitive and ...
We argue that within-industry investor diversification is directly related to common ownership incentives (profit loads on rival firms by the manager of a firm) in product markets. Because of their respective investment strategies, passive investors are naturally more diversified than active investors. If more money flows from active toward passive investors, then common ownership incentives increase. ...
In diesem Artikel diskutieren wir die Notwendigkeit von Industriepolitik und die Rolle der Entwicklungsbanken für wirtschaftliche Entwicklung. Der Aufholprozess der Länder des globalen Südens auf das Produktivitätsniveau und den Lebensstandard des globalen Nordens ist die Ausnahme. Dafür gibt es im Wesentlichen zwei ökonomische Erklärungen. Erstens werden die Entwicklungsländer zu Low-Tech- und arbeitsintensiven ...
The rise of online platforms has disrupted numerous traditional industries. A prime example is the short-term accommodation platform Airbnb and how it affects the hotel industry. On the one hand, consumers can profit from Airbnb due to an increased number of choices and lower prices. On the other hand, critics of the platform argue that it allows professional hosts to operate de facto hotels while ...
We examine whether a disclosure mandate for greenhouse gas emissions creates stakeholder pressure for firms to subsequently reduce their emissions. For UK-incorporated listed firms such a mandate was adopted in 2013. Using a difference-in-differences design, we find that firms affected by the mandate reduced their emissions – depending on the specification – by an incremental 14-18% relative to a control ...
The tremendous growth of digital transactions – mainly through online platforms - is profoundly affecting the way we interact and opening vast opportunities to improve our lives. Consumers are benefiting from an unprecedented proliferation of new services and products that previously were too costly to be developed and marketed to customers. At the same time, the characteristics of platform...