In a deregulated power system structure, power producers and customers share a common transmission network for wheeling power from the point of generation to the point of consumption. All parties in this open access environment may try to purchase the energy from the cheaper source for greater profit margins, which may lead to overloading and congestion of certain corridors of the transmission ...

Market structure models are used to identify submarkets or to test for the presence of submarkets where within-group competition is much stronger than across group competition. The implicit assumption in such models is that the brands in a submarket compete on the basis of their shared product features. However, if significant variety-seeking effects exist in the market, such an assumption may ...

A short-term electricity market coordinated by a system operator provides a foundation for a competitive electricity market. Combined with long-term contracts for generation and transmission congestion, the spot-market and competitive market pricing can support open access to the transmission grid. INTRODUCTION Electricity market restructuring emphasizes the potential for competition in generat...

Despite the robust tendency of laboratory markets to generate competitive outcomes, some market designs deviate persistently from competitive predictions. This essay discusses the primary drivers of supra-competitive prices that have been observed in market experiments. Trading Institutions and Market Performance. The robustness of competitive market predictions stands as one of the most impres...

Economic theory suggests that a monopolist can price discriminate more successfully than can a perfectly competitive firm. Most real-life markets, however, fall somewhere in between the two extremes. What happens as the market becomes more competitive: Does price discrimination increase or decrease? This paper examines how price discrimination changes with market concentration in the airline ma...

This paper examines the potential welfare effects of storage under different market structures. This includes combinations of perfectly competitive and strategic generation and storage sectors, and standalone and generator-owned storage. We demonstrate that if the generation sector is perfectly competitive and does not own storage, then storage cannot be welfare-diminishing. Otherwise, generato...

Agents that buy and sell goods or services in an electronic market need to adapt to the environment’s prevailing conditions if they are to be successful. Here we propose an on-line, continuous learning mechanism that is especially adapted for agents to learn how to behave when negotiating for resources (goods or services). Taking advantage of the specific characteristics of the price adaptation...

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This paper analyzes Markovian equilibria in a model of strategic lending where (i) agents cannot commit to long term contracts, (ii) contracts are incomplete, and (iii) incumbent lenders can coordinate their actions. The structure of the credit market keeps changing over time endogenously along every equilibium path. After a sequence of bad shocks the borrower in a competitive market accumulate...