----- Forwarded by Miyung Buster/ENRON_DEVELOPMENT on 05/08/2001 12:11 PM 
-----

	Rob Bradley@ENRON
	05/08/2001 12:05 PM
		 
		 To: Miyung Buster/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: 
		 Subject: Competition Reduces Prices Volatility & Shaves Demand

Please distribute.  Dr. Smith is well known for his work in experimental 
economics where he gets people together under largely controlled conditions 
and finds support for the laws of economics.

Consumer choice will reduce electricity prices and their volatility
----------
by Vernon L. Smith
   Experiments conducted at the economic sciences lab at the
   University of Arizona show that giving consumers the
   options
   of pricing power at different rates at different times
   of
   the day vastly reduced price volatility. (05/01)

http://www.mercatus.org/research/smithchoice.pdf

http://www.mercatus.org/research/smithdemand.pdf