Galetovic, Alexander; INOSTROZA, JUAN RICARDO - In: Revista de Analisis Economico – Economic Analysis Review 19 (2004) 1, pp. 77-117
There are at least two ways of fixing high voltage transmission tolls. One is to regulate them in standard fashion; another is to allocate new transmission lines in competitive auctions to the bidder offering the lowest toll. In this paper we show that expected tolls are considerably lower if...