FYI.  Use as necessary.

 -----Original Message-----
From: 	Yeung, Charles  
Sent:	Monday, September 10, 2001 2:24 PM
To:	Bestard, Jose; Ingersoll, Richard; Novosel, Sarah; Comnes, Alan; Kaufman, Paul; Rodriquez, Andy; Perrino, Dave; Walton, Steve; Nicolay, Christi L.; Lindberg, Susan; Guerrero, Janel; Will, Lloyd
Cc:	Shapiro, Richard; Steffes, James D.
Subject:	Cornell University Experiment on Market Prices

Cornell has published a report of 4 experiments conducted to test market trading behavior and its impact on electricity prices under different price auctions. 

1) uniform price auction
2) uniform price with interruptible loads
3) discriminative auction - generators are paid their actual offers
4) soft-cap auction 

The study is fascinating as real subjects were employed and paid real dollars based on their trading performance.  The findings are consistent with our arguments against price caps - particularly soft caps as installed in California.   I think there is some "empirical" data that can be used in our arguments against price caps.  

More variations of the auctions aimed at testing some assumptions used in these 4 experiments are planned, and industry is invited to participate in the experiments.

You can get the document directly at:
www.pserc.cornell.edu