Galetovic, Alexander; Inostroza, Juan Ricardo - In: Energy Economics 30 (2008) 4, pp. 1334-1366
There are at least two procedures for setting the tolls paid by power line users. One consists of regulating them in a standard process. The other, which is used in Argentina, involves auctioning the lines to the lowest toll. In this paper we show that an auction yields higher expected social...