Highlights

Does competition increase pass-through?, RAND Journal of Economics (2024)

Conventional wisdom in economics is that a market-wide cost increase is passed on to product prices more strongly in more competitive markets. This pass-through logic is surprisingly sensitive to the common assumption that firms’ cost functions are linear in output. In a world with capacity constraints, the reverse conclusion often applies.

Market design for a high-renewables European electricity system, Renewable & Sustainable Energy Reviews (2018)

What electricity market design is needed for a future power system dominated by solar and wind? This paper advances a set of design principles and policy recommendations spanning wholesale markets, renewable support, interconnectors, electricity storage, network tariffs, long-term contracts and risk management.

How do banks respond to increased funding uncertainty?, Journal of Financial Intermediation (2015)

The 2007-9 financial crisis saw banks shrink their balance sheets, increase interest rates on loans and deposits (sometimes to a “loss leader”), and suffer a much-reduced return on equity. These effects can all be traced back to the increase in uncertainty in interbank markets with which the crisis began in Summer 2007.

Emissions trading with profit-neutral permit allocations, Journal of Public Economics (2013)

How can governments get stakeholder buy-in for carbon pricing? One popular policy is to freely allocate carbon allowances in a cap-and-trade system. Free permit allocation of 20-30% of emissions is often enough to preserve industry profits, leaving significant room to raise fiscal revenue from allowance auctions.

Strategic incentives for market share, International Journal of Industrial Organization (2008)

Game theory emphasises offence: moves to gain strategic advantage over rivals. This paper highlights defence: making yourself more resilient to rivals’ moves. Linking executive pay to market share—a widespread practice in sectors including automotive and investment banking—plays both offence and defence.