Upon discussion of price setting on electricity wholesale markets, many refer to the so-called merit order model …. Conventional wisdom holds that during most hours of the year, coal- or natural gas-fired power plants set the price on European … markets. In this context, this paper analyses price setting on European power markets. We use a fundamental electricity market …

procurement officers' access to this information caused a significant reduction in purchase unit prices, particularly for products … characterized by a higher ex-ante unit price, a smaller number of suppliers, and purchased by a smaller number of public … institutions. The gains in efficiency are attributed to the use of up-to-date market information, which is particularly useful for …