In the data, a sizable fraction of price changes are temporary price reductions referred to as sales. Existing models … include no role for sales. Hence, when confronted with data in which a large fraction of price changes are sales related, the … models must either exclude sales from the data or leave them in and implicitly treat sales like any other price change. When …

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 …

characterized by a higher ex-ante unit price, a smaller number of suppliers, and purchased by a smaller number of public …