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Deregulated Electricity Market and Auctions: the Italian case

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  • Luca Grilli

Abstract

The Electricity Market (in Europe) undergoes a period of transformations never seen before. The competi-tive model suggested by the European Commission is based on a gradual increase in the classes of consum-ers able to choice, freely, their providers. In general, liberalization, deregulation, competition result in a spur to development and low prices for consumers. The Electricity Market isn’t likely to follow such a rule. Electricity Markets are best described and analyzed as first-price multi-unit procurement iterated auctions. In this paper we present an analysis of the Italian case in order to show the effects of deregulation on final prices for users.

Suggested Citation

  • Luca Grilli, 2010. "Deregulated Electricity Market and Auctions: the Italian case," Quaderni DSEMS lg_ib_2010, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    • Handle: RePEc:ufg:qdsems:lg_ib_2010
    DOI: 10.4236/ib.2010.23030
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    References listed on IDEAS

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    1. Rassenti, Stephen J & Smith, Vernon L & Wilson, Bart J, 2003. "Discriminatory Price Auctions in Electricity Markets: Low Volatility at the Expense of High Price Levels," Journal of Regulatory Economics, Springer, vol. 23(2), pages 109-123, March.
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    4. Steven L. Puller, 2007. "Pricing and Firm Conduct in California's Deregulated Electricity Market," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 75-87, February.
    5. Thomas‐Olivier Léautier, 2001. "Electricity Auctions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(3), pages 331-358, September.
    6. Lawrence M. Ausubel, 2004. "An Efficient Ascending-Bid Auction for Multiple Objects," American Economic Review, American Economic Association, vol. 94(5), pages 1452-1475, December.
    7. Abbink, Klaus & Brandts, Jordi & McDaniel, Tanga, 2003. "Asymmetric Demand Information in Uniform and Discriminatory Call Auctions: An Experimental Analysis Motivated by Electricity Markets," Journal of Regulatory Economics, Springer, vol. 23(2), pages 125-144, March.
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