Aufsatz in Zeitschrift

It’s in the Data – Improved Market Power Mitigation in Electricity Markets

Jacqueline Adelowo, Moritz Bohland
CESifo, Munich, 2023

EconPol Forum 24 (5), 46-51
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  • Some electricity markets use automated mitigation procedures against market power abuse
  • This requires marginal cost estimates, which have to be derived from observed auction bids
  • Current estimation procedures can be improved by using available auction data more systematically
  • Our redesign delivers more precise estimates and reduces the risk of strategic manipulation by firms
  • Precise mitigation allows for welfare gains and transfers to buyers in a simulation

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