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Capacity constraints on transmissions of electricity are raising an increasing policy concern as electricity markets are integrated around the world. But our understanding of the workings of such markets is still limited. The purpose of this paper is to highlight the impact of transmission...
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We analyze a drastic price increase in the German auction market for reserve power, which did not appear to be driven … back to an abuse of the auction’s pay-as-bid mechanism by the two largest firms. In contrast to theoretical findings, we …
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I extend multi-unit auction estimation techniques to a setting in which firms can express cost complementarities over … time. In the context of electricity markets, I show how the auction structure and bidding data can be used to estimate …
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