Showing papers by "Robert J. Thomas published in 2004"
10 Oct 2004
TL;DR: PowerWeb as discussed by the authors is a Web-based electric power market simulation tool that combines the human behavior characteristics of a market structure with the operational and reliability aspects of the underlying power system to evaluate the economic and reliability impacts of given market designs as well as to train and educate students, industry professionals and policy makers.
Abstract: This paper describes a Web-based electric power market simulation tool called PowerWeb. It can be used as an experimental economics research tool to evaluate the economic and reliability impacts of given market designs as well as to train and educate students, industry professionals and policy makers. It is unique in its ability to combine the human behavior characteristics of a market structure with the operational and reliability aspects of the underlying power system.
28 citations
26 Feb 2004
TL;DR: In this paper, the authors advocate a practical and objective approach to examine market power based on revenue sensitivities, which requires only currently available information together with the rules used to operate the electricity market and system.
Abstract: The analysis of recently restructured electric power systems has led to discussions concerning the ability of market participants to manipulate the market to their advantage. Indeed there are instances in which market manipulation has been convincingly established. In this paper we advocate a practical and objective approach to examine market power based on revenue sensitivities. Computing the sensitivities requires only currently available information together with the rules used to operate the electricity market and system. We specifically identify those suppliers with the ability to increase revenues by raising prices or withholding capacity. These suppliers may enjoy some measure of market power since such ability would not be possible in a competitive market in which their generation is easily substitutable. We present a visualization of relevant metrics that have the potential to allow those with the market monitoring function to observe opportunities for market power in real-time. Possible uses for the information are discussed.
15 citations
TL;DR: In this article, the authors show that a higher number of suppliers may be necessary to approximate competitive market solutions, this in the absence of any communication among producers, and that market results with 24 participants approach pure monopoly values.
9 citations
10 Oct 2004
TL;DR: In this paper, the authors describe a framework for testing the efficacy of various supply-side auctions including one with price-responsive load and a soft-cap market, compared to a non-uniform price discriminative auction also inappropriately termed a "pay-as-bid" auction.
Abstract: Testing auction mechanisms using humans in a controlled environment provides an excellent and inexpensive means for evaluating their relative merits. This paper describes a framework for testing the efficacy of various supply-side auctions including one with price-responsive load and a soft-cap market. These are compared to a nonuniform price discriminative auction also inappropriately termed a "pay-as-bid" auction. Experimental evidence to date based on uniform price market testing has shown an ability of price responsive load to mitigate high volatility and average price.
3 citations