Benavente, José Miguel; Galetovic, Alexander; … - In: Revista de Analisis Economico – Economic Analysis Review 20 (2005) 2, pp. 23-40
valuable kWh (as indicated by the market demand curve) are rationed. Then we estimate the per-kWh cost of rationing by cutting … off service. We find that the outage cost varies considerably depending on the length of the rationing period; and on how … rationing efficiently is between two and six times cheaper than rationing by cutting off service …