Michael Giberson If you have a long political memory — say going back about two weeks, which now seems like ages ago — you might remember the furor over the “failure” of polls and prediction markets when Hillary Clinton won the New Hampshire Democratic primary. Prediction markets, the boastful new kid on the block, were …
How Do You Know if a Prediction Market is Any Good? Read More »
Michael Giberson From the EU Energy Policy Blog, Thomas-Olivier Léautier contemplates the factors that contribute to efficient investment and management of transmission systems: As power engineers and economists have known for a long-time, the transmission grid is essential to the operation of well-functioning electric power markets. Yet, grid expansion in several regions has been nil …
What Institutional Framework for Electric Power Transmission? Read More »
Michael Giberson Columnist Jay Hancock of the Baltimore Sun takes note of a complaint filed at FERC by the Maryland Public Service Commission that alleges local market power in PJM’s wholesale power market added $87.5 million to energy costs in the state. Hancock provides a link to the complaint at FERC for the curious. Also …
Market Power in Maryland Power, and Other Economics Stories in the News Read More »
Michael Giberson *Well, almost real congestion pricing. It may not be the real thing, but it is a reasonable facsimile and a step in the right direction. It is not quite the real thing, because, as I observed last time, the FAA “will not allow airport authorities to charge prices sufficient to balance demand with …
Yes, This is Real Congestion Pricing for Airports* Read More »
Michael Giberson Over 200 companies have qualified to participate in the upcoming FCC spectrum auction. While that sounds like enough to create a lot of competition, as the auction approaches FCC chairman Kevin Martin is beginning to sound a little nervous. Yesterday he expressed concern that problems in the credit markets and general economic conditions …
Michael Giberson The Federal Aviation Administration is proposing to change its policy toward landing fees to “provide greater flexibility to operators of congested airports to use landing fees to provide incentives to air carriers to use the airport at less congested times or to use alternate airports to meet regional air service needs.” As explained …
Michael Giberson The New Jersey experience illustrates one other key insight into regulation of a network. In a network industry such as electricity, where the network extends across state lines, it is possible for one state to exert significance externalities on others. The siting of transmission lines or an electricity generator in one state can …
Regulation of Networks when Networks Cross Political Borders Read More »
Michael Giberson In yesterday’s Washington Post, Robert Bryce wrote on Five Myths About Breaking our Oil Habit: Energy independence will reduce or eliminate terrorism. A big push for alternative fuels will break our oil addiction. Energy independence will let America choke off the flow of money to nasty countries. Energy independence will mean reform in …
Michael Giberson I was wrong a few weeks ago when I wrote, “While the FCC has sponsored research and considered deployment [of package bidding and combinatorial auctions], so far they have been dissuaded by the complexity of the auction design and opposition from commenters.” The FCC has tried package bidding once before, in 2003, when …
Package Bidding Auction Design for the Fcc’s Upcoming 700 Mhz Spectrum Auction Read More »
Michael Giberson The NCAA basketball season is well underway, and soon enough March Madness will be here. Do you have your brackets worked out yet? Last year while working out a few thoughts on arbitrage opportunities in basketball tournament prediction markets at Inkling, it occurred to me that the Inkling pricing mechanism was just a …
At the Intersection of Prediction Markets and Basketball Tournaments Read More »
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