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Greve, Thomas; Michael, Michael G. Pollitt … - Faculty of Economics, University of Cambridge

In most network asset procurement exercises, network configurations are predefined by the auctioneers. Bidders can neither propose different network configurations nor can they submit bids on a group of network links. We believe the market itself can be designed better. We present a lot...

Persistent link: https://www.econbiz.de/10010790559

Auctions and trading in energy markets -- an economic analysis

Newbery, D.; McDaniel, Tanga - Faculty of Economics, University of Cambridge - 2002

Auctions are playing an increasingly prominent role in the planning and operation of energy markets. Comparing the New … of using auctions to replace regulation by market solutions for managing the natural monopolies in energy markets. …

Persistent link: https://www.econbiz.de/10005783778

Supply Function Equilibria: Step Functions and Continuous Representations

Holmberg, P.; Newbery, D; Ralph, D. - Faculty of Economics, University of Cambridge - 2008

In most wholesale electricity markets generators must submit stepfunction offers of supply to a uniform price auction, and the market is cleared at the price of the most expensive offer needed to meet realised demand. Such markets can most elegantly be modelled as the purestrategy, Nash...

Persistent link: https://www.econbiz.de/10005783849

Use of Long-term Auctions for Network Investment

McDaniel, Tanga; Neuhoff, K. - Faculty of Economics, University of Cambridge - 2002

Short-term auctions for access to entry terminals of the British gas-network appear to successfully allocate scarce … resources and capture scarcity rent. Now long-term auctions are being introduced to guide future capacity expansion decisions …-term auctions for transmission capacity are not necessarily preferable to regulatory approved capacity expansion. …

Persistent link: https://www.econbiz.de/10005113889

Auctioning of EU ETS Phase II allowances: how and why?

Hepburn, C.; Grubb, M.; Neuhoff, K.; Matthes, F.; Tse, M. - Faculty of Economics, University of Cambridge - 2006

The European Directive on the EU ETS allows governments to auction up to 10% of the allowances issued in Phase II 2008-2012, without constraints specified thereafter. This paper reviews and extends the long-standing debate about auctioning, in which economists have generally supported and...

Persistent link: https://www.econbiz.de/10005113898

Communication networks in markets

Gallo, Edoardo - Faculty of Economics, University of Cambridge - 2014

This paper proposes a dynamic model of bargaining to analyze decentralized markets where buyers and sellers obtain information about past deals through their social network. There is a unique equilibrium outcome which depends crucially on the peripheral (least connected) individuals in each...

Persistent link: https://www.econbiz.de/10010890020

Allocating Transmission to Mitigate Market Power in Electricity Networks

Gilbert, Richard; Neuhoff, K.; Newbery, D. - Faculty of Economics, University of Cambridge - 2002

We ask what conditions transmission contracts increase or mitigate market power. We show that the allocation process of transmission rights is crucial. In an efficient arbitraged uniform price auction, generators will only obtain contracts that mitigate their market power. However, if generators...

Persistent link: https://www.econbiz.de/10005113830

Banker Compensation and Confirmation Bias

Sabourian, H.; Sibert, A.C. - Faculty of Economics, University of Cambridge - 2009

Confirmation bias refers to cognitive errors that bias one towards one's own prior beliefs. A vast empirical literature documents its existence and psychologists identify it as one of the most problematic aspects of human reasoning. In this paper, we present three related scenarios where...

Persistent link: https://www.econbiz.de/10008506828

The Superiority of Tough Reviewers in a Model of Simultaneous Sales

Gill, D.; Sgroi, D. - Faculty of Economics, University of Cambridge - 2003

This paper considers the impact of reviewers on the sale of a product of unknown quality. Sales occur simultaneously after an initial review by an unbiased, pessimistic or optimistic reviewer and we examine the impact on sales in each case. We find that counter-intuitively a pessimistic reviewer...

Persistent link: https://www.econbiz.de/10005783744

Modelling Experience as Signal Accumulation

Sgroi, D. - Faculty of Economics, University of Cambridge - 2002

Experience gained in a workplace characterised by decision-making and learning-by-doing is modelled via a process of signal accumulation under several different frameworks. We initially look at the probability of success based on uninterrupted signal accumulation, then consider the impact of...

Persistent link: https://www.econbiz.de/10005783765