Journal ArticleDOI
Competition in the British Electricity Spot Market
Richard Green,David M. Newbery +1 more
TLDR
In this paper, the authors show that the Nash equilibrium in supply schedules implies a high markup on marginal cost and substantial deadweight losses, and that subdividing the generators into five firms would produce better results.Abstract:
Most of the British electricity supply industry has been privatized. Two dominant generators supply bulk electricity to an unregulated "pool." They submit a supply schedule of prices for generation and receive the market-clearing price, which varies with demand. Despite claims that this should be highly competitive, we show that the Nash equilibrium in supply schedules implies a high markup on marginal cost and substantial deadweight losses. Further simulations, to show the effect of entry by 1994, produce somewhat lower prices, at the cost of excessive entry; subdividing the generators into five firms would produce better results.read more
Citations
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Journal ArticleDOI
Auction Theory: A Guide to the Literature
TL;DR: In this article, Klemperer et al. provide an elementary, non-technical, survey of auction theory, by introducing and describing some of the critical papers in the subject.
Journal ArticleDOI
Measuring Market Inefficiencies in California's Restructured Wholesale Electricity Market
TL;DR: In this paper, the authors present a method for decomposing wholesale electricity payments into production costs, inframarginal competitive rents, and payments resulting from the exercise of market power, and find significant departures from competitive pricing, particularly during the high-demand summer months.
Book
Modeling and Forecasting Electricity Loads and Prices: A Statistical Approach
TL;DR: In this paper, the authors present a case study of the electricity market in the UK and Australia, showing that electricity prices in both countries are correlated with the number of customers and the amount of electricity consumed.
Journal ArticleDOI
Strategic gaming analysis for electric power systems: an MPEC approach
TL;DR: In this article, a single-firm game model for analyzing power markets is presented, where each generating firm submits bids to an ISO, choosing its bids to maximize profits subject to anticipated reactions by rival firms.
Journal ArticleDOI
Demand-side view of electricity markets
TL;DR: In this paper, the authors argue that increasing the short-run price elasticity of the demand for electrical energy would improve the operation of electricity markets, however, that enhancing this elasticity is not an easy task.
References
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Book
The Theory of Economic Regulation
TL;DR: In this article, the authors argue that regulation is acquired by the industry and is designed and operated primarily for its benefit, and that the state has one basic resource which in pure principle is not shared with even the mightiest of its citizens.
Journal ArticleDOI
Supply function equilibria in oligopoly under uncertainty
Paul Klemperer,Margaret A. Meyer +1 more
TL;DR: In this paper, the authors model an oligopoly facing uncertain demand in which each firm chooses as its strategy a "supply function" relating its quantity to its price, and prove the existence of a Nash equilibrium in supply functions for a symmetric oligopoly producing a homogeneous good.
Book
Privatization: An Economic Analysis
John Vickers,George Yarrow +1 more
TL;DR: The process of selling assests and enterprises to the private sector raises questions about natural monopolies, the efficiency and equity of state-owned versus privately owned enterprises, and industrial policy as mentioned in this paper.
Journal ArticleDOI
Economies of scale in U. S. electric power generation
TL;DR: In this article, the authors estimate economies of scale for U.S. firms producing electric power and conclude that a small number of extremely large firms are not required for efficient production.
Posted Content
Privatization: An Economic Analysis
John Vickers,George Yarrow +1 more
TL;DR: The process of selling assests and enterprises to the private sector raises questions about natural monopolies, the efficiency and equity of state-owned versus privately owned enterprises, and industrial policy.