Open Access. Powered by Scholars. Published by Universities.®
- Publication
- File Type
Articles 1 - 2 of 2
Full-Text Articles in Business
Prediction Markets To Forecast Electricity Demand, Peter Cramton, Luciano De Castro
Prediction Markets To Forecast Electricity Demand, Peter Cramton, Luciano De Castro
Luciano I. de Castro
Forecasting electricity demand for future years is an essential step in resource planning. A common approach is for the system operator to predict future demand from the estimates of individual distribution companies. However, the predictions thus obtained may be of poor quality, since the reporting incentives are unclear. We propose a prediction market as a form of forecasting future demand for electricity. We describe how to implement a simple prediction market for continuous variables, using only contracts based on binary variables. We also discuss specific issues concerning the implementation of such a market.
Foreword To Ross Baldick's 'Single Clearing Price In Electricity Markets', Peter Cramton
Foreword To Ross Baldick's 'Single Clearing Price In Electricity Markets', Peter Cramton
Peter Cramton
Argues that consumers and suppliers are better off with the clearing-price auction in electricity markets.