Working Paper No. 1099

Electricity Markets: Designing Auctions Where Suppliers Have Uncertain Costs

Published: December 18, 2015, revised April 2016Pages: 38Keywords: Cost Uncertainty; Asymmetric information; Uniform-price auction; Discriminatory pricing; Market transparency; Wholesale electricity market; Treasury auction; Bidding format; Bayesian Nash EquilibriaJEL-codes: C72; D43; D44; L13; L94
Published version

Electricity Markets: Designing Auctions Where Suppliers Have Uncertain Costs Pär Holmberg and Frank A. Wolak


We analyze how market design in.uences the bidding behavior in multi-unit procurement auctions where suppliers have uncertain costs and are uncertain about the availability of production units, as in wholesale electricity markets. We .nd that the competitiveness of market outcomes improves with increased market transparency. We identify circumstances where the auctioneer prefers uniform to discriminatory pricing, and vice versa. We also identify circumstances where it should be market e¢ ciency enhancing to restrict the number of steps in the bid-schedules.

Pär Holmberg

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Global index of the sharing economy

Timbro SEI

2018 Bergh Funcke Wernberg - Timbro Sharing Economy Index-1fHemsidan.jpg

Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

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