Pricing of electric power under uncertainty: information and efficiency

Schemes for pricing electric power are compared in terms of how well they coordinate the decisions of participants-consumers, suppliers, regulators. A scheme is analyzed along two dimensions: the aspects of participants private information that the scheme reveals; and the efficiency of the allocation the scheme reaches. Information aspects are studied within the framework of economic mechanism theory; allocation efficiency is studied within a stochastic recourse model which takes into account consumer loss due to rationing.<
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