On the use of pay-as-bid auctions in California: some criticisms and alternative proposal

C. Vázquez, M. Rivier, I.J. Pérez-Arriaga

Summary:

This document presents some ideas regarding the use of the pay-as-bid pricing rule in multi-unit auctions. In particular, we focus on electricity markets and on the proposals for adopting this kind of mechanism in the California Power Exchange. We find that the pay-as-bid auction has important drawbacks. Instead, we attack the recent problems in California from another point of view and propose an alternative solution.

IIT-00-139WP

 Request the document to be emailed to you.

Due to copyright restriction we cannot distribute this content on the web. However, using the next form you can contact the authors, which are allowed to redistribute a limited number of copies of it by email. Please, check your spam folder.

Your name:
Your email:
Your company:
Code:
I accept the Privacy Policy	Yes.