Online Appendix : Market-based Emissions Regulation and the Evolution of Market Structure

@inproceedings{Fowlie2011OnlineA,
  title={Online Appendix : Market-based Emissions Regulation and the Evolution of Market Structure},
  author={Meredith L. Fowlie and Mar Reguant and Stephen P. Ryan},
  year={2011}
}
In each time period, firm i makes entry, exit, production, and investment decisions, collectively denoted by ai. Since the full set of dynamic Nash equilibria is unbounded and complex, we restrict the firms’ strategies to be anonymous, symmetric, and Markovian, meaning firms only condition on the current state vector and their private shocks when making decisions, as in Maskin and Tirole (1988) and Ericson and Pakes (1995). Each firm’s strategy, σi(s, i), is a mapping from states and shocks to… CONTINUE READING
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