Auctions are widely used to determine the remuneration for renewable energies. They typically induce a high concentration of renewable energy plants at very productive sites far-off the main load centres, leading to an inefficient allocation as transmission line capacities are restricted but not...

We conduct laboratory experiments for the Vickrey auction with and without an announcement on strategy-proofness to subjects. Although the rate of truth-telling among the subjects stays at 20% without the announcement, it increases to 47% with the announcement. Moreover, by conducting...

We conducted laboratory experiments for the multi-unit Vickrey auction with and without advice to subjects on strategy-proofness. The rate of truth-telling among the subjects without advice was 20%, whereas the rate increased to 47% among those who received advice. By conducting similar...

How should we select winning bids of generation units for strategic reserves that consist of capacity bids and energy bids? In this paper, we analyze two selecting mechanisms (scoring rules): "simultaneous" and "sequential". In case of a simultaneous scoring rule, capacity and energy bids are...

Short-term electricity markets are key to an efficient production by generation units. We develop a two-period model to assess different bidding formats to determine for each bidding format the optimal bidding strategy of competitive generators facing price-uncertainty. We compare the results...

We consider the problem faced by a procurement agency that runs a mechanism for constructing an assortment of differentiated products with posted prices, from which heterogeneous consumers buy their most preferred alternative. Procurement mechanisms used by large organizations, including...

Auctions with endogenous rationing have been introduced to stimulate competition. Such (procurement) auctions reduce the volume put out to tender when competition is low. This paper finds a strong negative effect of endogenous rationing on participation when bid-preparation is costly,...

The private entrepreneurs are not forced to limit themselves to the standard auction rules, and in case of the procurement auctions one can observe many hybrid or quasi-auction rules spontaneously introduced. The paper analyzes two of them, that are based on the common assumption: the...

This paper examines whether the seller of an object should reveal the identities of the participating bidders before bids become due. It is shown that when bidders experience identity dependent externalities and auction participation is exogenous, then for a large class of standard auction...