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Uniform Pricing Or Pay-As-Bid Pricing: A Dilemma For California And Beyond, Peter Cramton, Alfred E. Kahn, Robert H. Porter, Richard D. Tabors
Uniform Pricing Or Pay-As-Bid Pricing: A Dilemma For California And Beyond, Peter Cramton, Alfred E. Kahn, Robert H. Porter, Richard D. Tabors
Peter Cramton
Any belief that a shift from uniform to as-bid pricing would provide power purchasers substantial relief from soaring prices is simply mistaken. The immediate consequence of its introduction would be a radical change in bidding behavior that would introduce new inefficiencies, weaken competition in new generation, and impede expansion of capacity.