A dynamic supply side game applied to the european gas market
Working paper
Åpne
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http://hdl.handle.net/11250/2584488Utgivelsesdato
1987-07-16Metadata
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- Discussion Papers [1002]
Sammendrag
This paper discusses optimal investment plans for large gas exporters to Western Europe.
We discuss market power on the supply side, while assuming price taker behaviour on the
demand side.
A static game approach is compared to a dynamic, and we argue that the use of static
game models does not capture important market forces. A dynamic Nash game, where the
players can observe previous actions and react according to them, is introduced.