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.
JCR-JIF Impact Factor and WoS quartile: 2,200 - Q4 (2024)
DOI reference:
https://doi.org/10.1016/S1040-6190(01)00196-8
Published on paper: May 2001.
Published on-line: June 2001.
Citation:
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, May 2001. [Online: June 2001] doi: 10.1016/S1040-6190(01)00196-8
