Price Regulations in a Multi-unit Uniform Price Auction

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

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.
Original languageEnglish
Publication date2015
Number of pages32
Publication statusPublished - 2015
EventJahrestagung des Vereins fuer Socialpolitik 2015: Ökonomische Entwicklung - Theorie und Politik - Münster, Germany
Duration: 6 Sep 20159 Sep 2015
https://www.socialpolitik.de/De/jahrestagung-2015

Conference

ConferenceJahrestagung des Vereins fuer Socialpolitik 2015
CountryGermany
CityMünster
Period06/09/201509/09/2015
Internet address

Bibliographical note

CBS Library does not have access to the material

Keywords

  • Electricity
  • Capacity markets
  • Price regulation

Cite this

Boom, A. (2015). Price Regulations in a Multi-unit Uniform Price Auction. Paper presented at Jahrestagung des Vereins fuer Socialpolitik 2015, Münster, Germany.
Boom, Anette. / Price Regulations in a Multi-unit Uniform Price Auction. Paper presented at Jahrestagung des Vereins fuer Socialpolitik 2015, Münster, Germany.32 p.
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keywords = "Electricity, Capacity markets, Price regulation, Electricity, Capacity markets, Price regulation",
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Boom, A 2015, 'Price Regulations in a Multi-unit Uniform Price Auction' Paper presented at, Münster, Germany, 06/09/2015 - 09/09/2015, .

Price Regulations in a Multi-unit Uniform Price Auction. / Boom, Anette.

2015. Paper presented at Jahrestagung des Vereins fuer Socialpolitik 2015, Münster, Germany.

Research output: Contribution to conferencePaperResearchpeer-review

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AB - 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.

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Boom A. Price Regulations in a Multi-unit Uniform Price Auction. 2015. Paper presented at Jahrestagung des Vereins fuer Socialpolitik 2015, Münster, Germany.