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Limit Pricing and Entry Game of Renewable Energy Firms into the Energy Sector

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  • Willi Semmler
  • Giovanni Di Bartolomeo
  • Behnaz Minooei Fard
  • Joao Paulo Braga

Abstract

In the energy sector, fossil fuel incumbents often inhibit renewable energy entrants. This paper presents a game-theoretic model of competition between these firms. Using a dynamic limit pricing model, we study entry dynamics and the effects of financial and fiscal policies on competition, applying nonlinear model predictive control for scenario prediction.

Suggested Citation

  • Willi Semmler & Giovanni Di Bartolomeo & Behnaz Minooei Fard & Joao Paulo Braga, 2022. "Limit Pricing and Entry Game of Renewable Energy Firms into the Energy Sector," wp.comunite 00158, Department of Communication, University of Teramo.
  • Handle: RePEc:ter:wpaper:00158
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    Cited by:

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    6. Jianping Gu & Yi Li & Jingke Hong & Lu Wang, 2024. "Carbon emissions cap or energy technology subsidies? Exploring the carbon reduction policy based on a multi-technology sectoral DSGE model," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.

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    More about this item

    Keywords

    limit pricing; renewable energy; fossil fuels; game theory; model predictive control;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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