Market Design

Class Material on Market Design

   UK
       Plans for Reform of the Gas Industry, 1998

   Australia
       Reform of the Gas Industry in Australia, 1997

    USA
        FERC Notice of Proposed Rule Making: Reform of Gas Pipeline Pricing via Auctions, 1998;
Auctions and Their Use in Natural Gas Markets
NGSA Filing to FERC regarding proposed auction of pipeline capacity, April 1999

    USA
        FCC Report on Package Bidding for Spectrum Licenses;
FCC Description of Simultaneous Ascending Auctions Used for Allocation of Spectrum;
FERC NPRM about Auction of COLR, 1998;
Papers by Valter Sorana on Auctions of COLR, 1998:
Some Economics of Carrier Of Last Resort Auctions and Auctions for Universal Service Subsidies
Weller on Auctions of Universal Service Obligations
Milgrom on a Procurement Auction for Universal Service
Kelly-Steinberg Package Bidding Proposal

Canada
        Framework for Spectrum Allocation Auctions;
        Policies for Spectrum Allocation Auctions
Rules of the Canadian Spectrum Auctions 1999

USA
Chao and Wilson article on Auctions of Reserves, 1999;
Chao and Wilson draft material on Design of Wholesale Electricity Markets, 1999;
Ruff's article on Design of Wholesale Electricity Markets, 1998;
Cameron, Cramton, and Wilson on Divestiture Auctions for Stranded Assets, 1997;
Cramton et al on Standard Service Auctions, 1997:
Rules for Standard Offer Service Auction; and Auction Design for Standard Offer Service;
Hogan's article on Penn-NJ-MD market design using nodal prices, 1998;
Cramton-Wilson critique of New England ISO Market Design, 1998;
CA-ISO Manual for Bidders for Firm Transmission Rights;
CA-ISO Market Surveillance Committee review of Ancillary Services Markets, 1998;
Wilson's Proposal for Rational Buying of Reserves, 1998;
Brien's Critique of California's Reserve Markets, 1999
Arizona reports on Electricity Markets:
Spot Market Mechanism Design and Competitivity Issues in Electric Power and
Regulatory Reform in the Electric Power Industry;
Hogan's Primer on Wholesale Electricity Markets, 1998
Karen Shea's description of the California Markets 1999
Larry Ruff's essay on Competitive Electricity Markets 1999

UK
Green's Critique of the Proposed Changes in UK Electricity Market Design, 1999;
OFFER's Report on Reforms of Electricity Trading Arrangements, July 1998

Canada
Report on Auctions of Power Purchase Agreements, 1998;
Issue Page 3; and Volumes 1; and Volume 2; of Final Report of the
Ontario Market Design Committee 1998

Mexico
Government Proposal for Power Industry Restructuring, 1999
Proposed reforms of the electricity market 1999

Spain
Mercado materials from www.omel.es: Servicios Complementarios; Descripción general;
Precio del mercado diario; Garantia de potencia; Mercado Diario; Mercado Intradiario; Noticias

Australia
Wolak's article on Effect of Hedge Contracts on Bidding in Australia Market, 1999;
Auction of Revenues from Transmission Charges
Markets for Ancillary Services in Australia - Consultancy Report
Markets for Ancillary Services in Australia - NEMMCO Report

Columbia
Ennio Stacchetti on Auction Design for the Columbian Electricity Market 1999

International
Wolak's article on International Comparisons, 1998;
Overviews of Australian and Scandinavian power markets, 1997;
International Electricity websites
Electricity Bibliography

Renewables
CEC Manual for Bidders in Auction of Renewables Subsidies 1997;
California Report to Legislature, 1998

Reserves
CA-ISO Materials on "rational buyer" redesign of ancillary services, 1999:
Opinion of the CAISO Market Surveillance Committee on The Rational Buyer Protocol;
Memo re: Ancillary Service Market Redesign and FERC Filing;
Attachement F: Rational Buyer;
Reliability Must-Run Contracts for the California Electricity Market

Transmission
Studies by Stoft, and by Borenstein et al., 1998, on Market Power effects:
Transmission Rights and Market Power;
How Financial Transmission Rights Curb Market Power; and
The Competitive Effects of Transmission Capacity in a Deregulated Electricity Industry;
FTR Auction Design for the California ISO
FERC Notice of Proposed Rule Making, May 1999, regarding Regional Transmission Operators

General
Primer on restructuring of wholesale electricity market
Harbord and von der Fehr, International Survey of Competitive Electricity Markets

Auction Design
Perry on Two Stage Auctions
Sandholm on Package Bidding

Auctions
Kelly and Steinberg article on Package Bidding, 1998;
Wilson article on Activity Rules for Iterative Double Auction, 1998
Das Varma's paper on auctions with identity-dependent externalities
Peters' paper on competition among mechanisms
Auctions with Almost Common Values: The "Wallet Game" and its Applications
Auction Theory: A Guide to the Literature
Prices and the Winner's Curse
The Generalized War of Attrition
Armstrong on Optimal Multi-Object Auctions 1999
Bibliography on Auctions 1996
Wilson draft on Market Architecture 1999
Maskin and Riley on Asymmetric Auctions 1999
Ausubel and Cramton on the Optimality of Being Efficient 1999
Ausubel and Cramton on Vickrey Auctions with Reserve Pricing 1999

USA
US Treasury report on Experiments with Uniform Price Auctions, 1997;
US Treasury's Update of Auction Experiment, Draft 1998;
References tgo Background Reading

UK
Binmore on Bank of England Gilt Auctions

USA
Data on emissions Auctions; Articles evaluating SO2 Emissions Auctions:
1996 Update on Compliance and Emissions Trading Under The U.S. Acid Rain Program;
1998 EPA SO2 Allowance Auction: 7 year Advance Auction (2005); 
Emissions Trading Under the U.S. Acid Rain Program: Evaluation of Compliance Costs and
Allowance Market Performance;
Emission Trading Under The U.S. Acid Rain Program;
1998 EPA SO2 Allowance Auction: Spot Auction Bids