TILEC Work In Progress: Yueting Yu
Date:
Time:
10:45
Location:
ONLINE Meeting
Pay-as-Bid Auctions in Electricity Markets
We present a model to characterize the competitive benchmark of both uniform price auctions and pay-as-bid auctions, taking into account producers' investment incentives. We find that there is always a mark-up on cost in the market equilibrium of pay-as-bid auctions except for the top and the initial investment level is lower, which indicates inefficiency and a lack of investment incentives.
Time: 10:45-11:45
* Please contact TILEC should you wish to attend the online meeting