By Murat R. Sertel (eds.)
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Additional info for Contemporary Economic Issues: Economic Behaviour and Design
This approach of 'completing the market' for externalities (Newbery, 1989), coupled with full contracting to eliminate market power, has considerable theoretical appeal but doubtful practicality. Such an approach might work in a completely predictable world, but competitive nodal prices change on a timescale of hours, while grid investments may last for decades. It would seem better to aim for robust and simpler systems which minimize temptations to exercise market power. For example, requiring generators to submit bids for each station for relatively longer periods, say, months, rather than a day ahead, might reduce short-run incentives to exploit local market power, while encouraging longer period contracts for handling constraints (NGC now holds several such contracts).
And D. M. Newbery (1994) 'The Dynamic Efficiency of Regulatory Constitutions', The Rand Journal. Green, R. J. (1992). 'Contracts and the Pool: The British Electricity Market', DAE, August (mimeo). Green, R. J. (1998) 'The Electricity Contract Market in England and Wales', Journal of Industrial Economics, forthcoming. Green, R. J. and D. M. Newbery (1992) 'Competition in the British Electricity Spot Market', Journal of Political Economy, vol. 100, no. 5, October, pp. 929-53. Henck, F. W. and B. Strassburg (1988) A Slippery Slope: The Long Road to the Breakup of AT&T (Westport, Conn.
E. (1985) The Economic Institutions of Capitalism (New York: Free Press). 2 Bayesian Regulatory Mechanisms: Corruption and Learning* Semih Koray and ismail Saglam BiLKENT UNIVERSITY, TURKEY 1 INTRODUCTION Regulation can be described as central interference with industrial activities, aiming to achieve social efficiency when it cannot be reached through the market by itself. This area of economics basically deals with the design of artificial rules under which outcomes which otherwise can only be attained through cooperation can be reached through the non-cooperative and decentralized behaviour of agents.
Contemporary Economic Issues: Economic Behaviour and Design by Murat R. Sertel (eds.)