Price Regulations in a Multi-unit Uniform Price Auction

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Abstrakt

Inspired by recent regulations in the New York ICAP market we examine the effect of different price regulations on a multi-unit uniform price auction. We investigate a bid cap and a bid foor. Given suffciently high total capacities general bid caps always ensure that the market price does not exceed the price cap whereas a selective bid cap for only the larger firms, does not guarantee this outcome. A sufficiently high bid floor always destroys pure strategy equilibria with equilibrium prices above the marginal costs, no matter whether the floor applies to all or only to relatively small firms.
OriginalsprogEngelsk
Publikationsdato2014
Antal sider27
StatusUdgivet - 2014
BegivenhedThe 12th Annual International Industrial Organization Conference. IIOC 2014 - Northwestern Law Searle Center on Law, Regulation and Economic Growth, Chicago, IL, USA
Varighed: 11 apr. 201413 apr. 2014
Konferencens nummer: 12
http://editorialexpress.com/conference/IIOC2014/program/IIOC2014.html

Konference

KonferenceThe 12th Annual International Industrial Organization Conference. IIOC 2014
Nummer12
LokationNorthwestern Law Searle Center on Law, Regulation and Economic Growth
LandUSA
ByChicago, IL
Periode11/04/201413/04/2014
Internetadresse

Bibliografisk note

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Emneord

  • Electricity
  • Capacity markets
  • Price regulation

Citationsformater

Boom, A. (2014). Price Regulations in a Multi-unit Uniform Price Auction. Paper præsenteret på The 12th Annual International Industrial Organization Conference. IIOC 2014, Chicago, IL, USA.