In this paper, they compare the competitive benchmark of uniform price auctions and pay-as-bid auctions, taking into account producers’ investment incentives. The authors assume a continuum of technologies from base-load to peakers and derive the equilibrium generation portfolio and bidding strategies. They find that in the short run, pay-as-bid auction may lower costs for consumers, but investment incentives are reduced, which lowers efficiency.

Speaker

Bert Willems

Tilburg University, The Netherlands

Date

14.12.2020 | 16:00 - 17:30 (CET)

Event Location

Online


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