Lezioni sui meccanismi d'asta

Lectures Shot course DEFAP 2015


Topic  1

Introduction to electricity markets: general topics of market architecture and the actual implementation

Designing electricity auctions

The Italian electricity auctions

The history of ENEL and the Italian electricity industry

Topic 2

The private value auction model under different payment rules

Bidding behavior and equilibrium results

Notes on order statistics

Topic 3

Extensions of the basic model: multi-object auctions, bid shading results, failure of revenue equivalence.

Topic 4

Theoretical models of multi-unit auctions for electricity markets



Auctions in general: Elmar Wolfstetter, Topics in Microeconomics, CUP 2002, chapter 8. You will find the .pdf on the


Multi-unit (share auctions): Wilson (1979), "Auctions of shares", The Quarterly Journal of Economics, 93(4), pp. 675-689.

Supply functions equilibrium: Klemperer and Meyer (1989), "Supply Function Equilibria in Oligopoly under Uncertainty", Econometrica, 57(6), pp. 1243-1277.

Empirical analisys of auction: Ali Hortacsu, “Recent progress in the empirical analysis of multi-unit auctions”, International

Journal of Industrial Organization, 29(2011) 245-349.