TILEC Seminar : Natalia Fabra (U Carlos III Madrid),
Technology-Neutral vs Technology-Specific Procurement
An imperfectly informed principal (e.g. a regulator, a firm) needs to procure multiple units of a good that can be produced with heterogeneous
technologies. Should she run technology-specific or technology-neutral auctions? Should she allow for partial separation across technologies
(technology banding)? Should she instead post separate prices for each technology? What are the trade-offs involved? We find that one size does not fit all: the preferred instrument depends on the nature of the available technologies, the extent of information asymmetry regarding their costs, the costs of public funds, and the degree of market power. Using Spanish data on recently deployed renewables across the country, we illustrate how our
theory can shed light on how to more effectively procure these technologies. Beyond this motivation/application, the question of how to procure goods in the presence of multiple technologies is relevant in a wide variety of settings, including firm outsourcing or emissions regulation, among others.
Presented by : Natalia Fabra
Natalia works in the field of Industrial Organization, with emphasis on Energy and Environmental Economics, and Regulation and Competition Policy. In 2014, she was awarded with the Sabadell-Herrero Prize for Best Young Spanish Economist .
Host: Bert Willems
Time : 10:45-11:45
* Please contact TILEC should you wish to attend the online meeting