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 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 »
Michael Giberson A few recent news articles on congestion has Peter Klein at Organization and Markets asking, “Why the Resistance to Pricing?” When the quantity demanded exceeds the quantity supplied — causing shortages, delays, congestion, misallocation — the solution is to raise the price. Every freshman economics student knows this. Why, then, are regulators, industry …
Economists Do Not Understand the Opposition to Congestion Pricing Read More »
Michael Giberson A New York Times article reports on negotiations initiated by the U.S. Department of Transportation seeking to get airlines to voluntarily give up landing slots at Kennedy Airport, one of the nation’s most congested airports. (Many other stories on this topic are available.) After a pep talk by the secretary of transportation, Mary …
Michael Giberson Duquesne Light has announced it wants to drop out of PJM and join the neighboring Midwest ISO, citing the high costs emerging from PJM’s capacity market as their motivation. The capacity market is called the “RPM” market after the “reliability pricing model” which serves as the underlying pricing mechanism. Duquesne has filed a …
Capacity Market Costs Drive Utility to Want to Leave Pjm, Join Midwest Iso Read More »
Michael Giberson Quoting Grimmelmann: First off, the Times pleads its inability to re-report every challenged story. Fair enough…. It’s one thing not to revisit stories as new information becomes available. (The Times isn’t Wikipedia, after all, and we shouldn’t hold it to the same higher standards of timeliness.) But it’s something else not to append …
James Grimmelmann on Errors Published in the New York Times Read More »
Michael Giberson I stumbled across the Home of the Groove blog some months back. It turned out to be a great place to delve deeper into New Orleans funk and R&B and related musicality. And recently, the Home of the Groove has sprouted its own internet radio station running a 10-hours and growing playlist of …
Michael Giberson Yesterday, PJM Interconnection announced the sudden retirement of CEO Phillip Harris. In a press release, the PJM board stated: We are announcing that President Phillip G. Harris has elected to retire from PJM. We want to acknowledge Mr. Harris’ considerable contributions to PJM and our industry over his many years of service. Without …
PJM’s Newly Ex-CEO: PJM Never Really Wanted a Market Monitor Read More »
Michael Giberson A Swiss software security research company, WabiSabiLabi, is establishing an online auction site to allow security researchers to auction off discoveries of software vulnerabilities. In their press release, they said: Recently it was reported that although researchers had analyzed a little more than 7,000 publicly disclosed vulnerabilities last year, the number of new …
Auction Seeks to Provide Competitive Prices for the Discovery of Network Goods Read More »
Michael Giberson From The Star-Ledger: U.S. Sen. Robert Menendez today urged a federal agency to hold hearings into whether the company that runs the regional power grid is undermining the work of a monitor whose job is to guard against manipulation of electricity prices. In a letter to the Federal Energy Regulatory Commission, Menendez (D-N.J.) …
U.S. Senator Weighs in on PJM Dispute with Market Monitor Read More »
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