Open Access. Powered by Scholars. Published by Universities.®
- Institution
Articles 1 - 2 of 2
Full-Text Articles in Industrial Organization
An Experimental Study Of Complex-Offer Auctions From Wholesale Energy Markets, Rimvydas Baltaduonis
An Experimental Study Of Complex-Offer Auctions From Wholesale Energy Markets, Rimvydas Baltaduonis
Economics Faculty Publications
A Payment Cost Minimization auction has been proposed as an alternative to the Offer Cost Minimization auction for use in wholesale electric power markets with an intention to lower procurement cost of electricity. Efficiency concerns have been raised for this proposal while assuming that the true production costs would be revealed to the auctioneer in a competitive market. Using an experimental approach, the study compares the performance of these two complex-offer auctions, controlling for the level of unilateral market power. The analysis finds that neither auction results in allocations that correspond to the true cost revelation. Two auctions perform similarly …
Intermediate Inputs And External Economies, Haiwen Zhou
Intermediate Inputs And External Economies, Haiwen Zhou
Economics Faculty Publications
Is the degree of external economies (at the industry level) higher than the degree of internal increasing returns (at the firm level)? If so, what is the exact source of this difference? In the general equilibrium model in which firms producing final goods choose the degree of specialization of their technologies, external economies arise from the usage of intermediate inputs and the existence of internal increasing returns. It is frequently assumed that increasing returns are absent at the firm level while present at the industry level. In this model, the existence of increasing returns at the firm level is necessary …