Strategic use of available capacity in the electricity spot market

The literature on deregulated electricity markets generally assumes available capacities to be given. In contrast, this paper studies a model where firms precommit to capacity levels before competing in a uniform price auction. The analysis sheds light on recent empirical findings that firms use their available capacity to obtain high market prices. There exist two equilibria where at least one firm withholds its available capacity to induce the maximum price. Moreover, in one equilibrium, the inefficient firm obtains a relatively large market share.spot market; capacity game; auction mechanism; electricity.

Assessing gas transit risks: Russia vs. the EU

This paper proposes a Transit Risk Index (TRI) designed to assess the riskiness of pipeline gas imports and to study the effect of introducing new gas routes. TRI controls for gas dependency, transit route diversification, political risks of transit, pipeline rupture probability, and the balance of power between supplying and consuming countries along the transit route. Evaluating TRI for the EU-Russia gas trade, we show that the introduction of the Nord Stream pipeline would further widen already large disparities in gas risk exposure across the EU Member States. The gas risk exposure of the Member States served by Nord Stream would decline. In contrast, EU countries not connected to Nord Stream, but sharing other Russian gas transit routes with the Nord Stream countries, would face greater gas risk exposure. We discuss the implications of our analysis for the design of the common energy policy in the EU.Gas transit risk; Index; Security of supply; Nord Stream; Common Energy Policy

Do Opponents' Experience Matter? Experimental Evidence from a Quantity Precommitment Game

This paper investigates why subjects in laboratory experiments on quantity precommitment games consistently choose capacities above the Cournot level - the subgame-perfect equilibrium. We argue that this puzzling regularity may be attributed to players' perceptions of their opponents' skill or level of rationality. In our experimental design, we use the level of experience (the number of periods played) as a proxy for the level of rationality and match subjects with different levels of experience. We first find evidence of capacity choices decreasing, and prices increasing, with the opponent's experience. Futhermore, we investigate the observed behavioural patterns by using the agent-form quantal response equilibrium model by McKelvey and Palfrey (1998). In particular, this framework takes into account any interaction between a player's own experience and that of his opponent. We show how the predictions of this theoretical framework fit well with the experimental data.Oligopoly; Quantity precommitment; Experience; Rationality

A method to Formalise the Rapid Prototyping Process

Facing the increasing complexity of the product design area, (reduction of cycle times, introduction of simultaneous engineering, introduction of digital mock-up, ... ) a research department which wants to define a rapid prototyping process is confronted to the problem of the tools’ choice. Therefore, we will propose in this article, a method allowing to conceive such a process. In a first chapter, we present the rapid prototyping area in the product design environment, in a second chapter we will propose our method illustrated by an industrial case

La trajectoire des Guigues d'Albon : Réseaux et lieux de pouvoir, Xe - XIIe siècle

Originally from Albon in the Rhone valley, the Guigues founded the principality of Dauphiné in the French Alps. Following their path allows us to study the role and evolution of the aristocracy from the end of the Carolingian era to the Gregorian crisis and within the context of the territorial consolidation of power in an area lying between France, Italy, and Germany that had no sovereign ruler. This also provides the opportunity to investigate the strategies they used to forge a network and consolidate their political power as they faced competition from the counts of Savoy and pressure from the Gregorian bishop Hugues of Grenoble. RésuméVenus d'Albon dans la vallée du Rhône, les Guigues sont à l'origine de la principauté du Dauphiné dans les Alpes françaises. Leur parcours permet de se pencher sur le rôle et l'évolution de l'aristocratie dans un espace sans souverain, entre France, Italie et Germanie, de la fin de la période carolingienne à la crise grégorienne, dans un contexte de territorialisation des pouvoirs. C'est également une opportunité de questionner les stratégies mises en place pour se forger un réseau et consolider politiquement leur position face à la concurrence des comtes de Savoie et aux pressions de l'évêque grégorien Hugues de Grenoble