Using Laboratory Experiments To Design Efficient Market Institutions: The Case Of Wholesale Electricity Markets
This paper assesses the contribution of laboratory experiments to the economics of design applied to the electricity industry. The analysis is dedicated to wholesale markets, and reviews the results accumulated to date concerning both the general architecture of power markets and the very details of the market rules or institution, that is the auction rule. We argue that these experimental results contribute to a better understanding of the performances properties and implementation features of competitive market designs and that experimental economics has proven very useful to public authorities to inform the restructuring of the electricity industry. It thus confirms the role of experimental economics as a complement to theoretical approaches in the design effort. Copyright 2006 The Authors Journal compilation © CIRIEC 2006.
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Volume (Year): 77 (2006)
Issue (Month): 4 (December)
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Abbink, Klaus & Brandts, Jordi & McDaniel, Tanga, 2003.
"Asymmetric Demand Information in Uniform and Discriminatory Call Auctions: An Experimental Analysis Motivated by Electricity Markets,"
Journal of Regulatory Economics,
Springer, vol. 23(2), pages 125-144, March.
- Klaus Abbink & Jordi Brandts & Tanga McDaniel, 2002. "Asymmetric demand information in uniform and discriminatory call auctions: an experimental analysis motivated by electricity markets," UFAE and IAE Working Papers 520.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).