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.
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The Electricity Journal. Volumen: 14 Número: 4 Páginas: 41-48
Referencia DOI: 10.1016/S1040-6190(01)00196-8
Publicado en papel: Mayo 2001.
C. Vázquez, M. Rivier, I.J. Pérez-Arriaga. If Pay-as-bid auctions are not a solution for California, then Why not a reliability market? . The Electricity Journal. vol. 14, no. 4, pp. 41-48, Mayo 2001.