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