Demand-Side Bidding Will Reduce the Level and Volatility of Electricity Price

Authors

Vernon L. Smith, Chapman UniversityFollow

Document Type

Article

Publication Date

2002

Abstract

If the motel industry runs more smoothly because motel room prices are free to fluctuate in response to changes in demand, why not let retail energy prices operate freely, too? Laboratory simulations of electricity markets support the economic intuition that market pricing would stabilize and lower energy prices.

Comments

This article was originally published in The Independent Review, volume 6, issue 3, in 2002.

Recommended Citation

Smith, Vernon L. “Demand-Side Bidding Will Reduce the Level and Volatility of Electricity Price.” The Independent Review, 6.3 (2002): pp. 441-445. Web.

Peer Reviewed

1

Copyright

Independent Review