Just Starting Out: Learning and Equilibrium in a New Market

We document the evolution of the new market for frequency response within the UK electricity system over a six-year period. Firms competed in price while facing considerable initial uncertainty about demand and rival behavior. We show that prices stabilized over time, converging to a rest point that...

Full description

Saved in:
Bibliographic Details
Published in:The American economic review 2018-03, Vol.108 (3), p.565-615
Main Authors: Doraszelski, Ulrich, Lewis, Gregory, Pakes, Ariel
Format: Article
Language:English
Subjects:
Adaptive learning
Convergence
Economic theory
Electric utilities
Electricity
Equilibrium
Fictitious
Learning
Markets
Prices
Uncertainty
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!