Why We Need to Stick with Uniform-Price Auctions in Electricity Markets
Peter Cramton and Steven Stoft ,
( 20 )
The Electricity Journal

Wholesale electricity markets are commonly organized around a spot energy market. Buyers and suppliers submit bids and offers for each hour and the market is cleared at the price that balances supply and demand. Buyers with bids above the clearing price pay that price, and suppliers with offers below the clearing price are paid that same price. This uniform-price auction, which occurs both daily and throughout the day, is complemented by forward energy markets.

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