The Internet has made consumer search much easier with consequences for competition, industry structure and product o¤erings. We explore these consequences in a rich but tractable model that allows for strategic design choices. We …nd a polarized market structure, where some …rms choose designs aiming for broad-based audiences, while others target narrow niches. Such an industry structure can a...

We assess how firms' incentives to operate and invest in energy storage depend on the market structure. For this purpose, we characterize equilibrium outcomes allowing for power and/or production, as well vertical integration between production. Market reduces overall efficiency through two channels: It induces an inefficient use of facilities, it distorts investment incentives. The worst outco...