optimal bidding strategies and modeling of imperfect information among competitive generators the emerging electricity market behaves more like an oligopoly than a perfectly competitive market due to special features such as a limited number of producers large investment size barrier to entry transmission constraints and transmission losses which discourage purchase from distant suppliers this makes it practicable for only a few independent power suppliers to service a given geographic region and in this imperfect market each power supplier can increase its own profit through strategic bidding the profit of each supplier is influenced to varying extents by differences in the degree of imperfection of knowledge of rival suppliers a new framework to build bidding strategies for power suppliers in an electricity market is presented in this paper it is assumed that each supplier bids a linear supply function and that the system is dispatched to minimize customer payments each supplier chooses the coefficients in the linear supply function to maximize benefits subject to expectations about how rival suppliers will bid a stochastic optimization formulation is developed and two methods proposed for describing and solving this problem a numerical example serves to illustrate the essential features of the approach and the results are used to investigate the potential market power

will digital technologies transform agriculture in developing countries mobile phones and the internet have significantly affected practically all sectors of the economy and agriculture is no exception building on a recent world bank flagship report this article introduces a concise framework for describing the main benefits from new information and communication technologies they promote greater inclusion in the broader economy raise efficiency by complementing other production factors and foster innovation by dramatically reducing transaction costs the article reviews the recent literature on corresponding technology impacts in the rural sector in developing countries digital technologies overcome information problems that hinder market access for many small scale farmers increase knowledge through new ways of providing extension services and they provide novel ways for improving agricultural supply chain management while there are many promising examples of positive impacts on rural livelihoods or digital dividends these have often not scaled up to the extent expected the main reason is that technology can always only address some but not all of the barriers faced by farmers in poorer countries

a model of the liquidity structure based on asset indivisibility abstract although the notion of a liquidity structure of asset yields is widely accepted there do not seem to be models of such a structure here the liquidity of an asset is taken to be its transaction velocity the amount traded per unit time divided by the stock assets are assumed to be indivisible and to differ in size trade using such assets is implied by pairwise matching and absence of double coincidence in produced goods it is shown that a sufficiently large asset has a lower velocity and a higher yield than a sufficiently small asset

composition of household income and child nutrition outcomes evidence from uganda summary this study targets the empirical space between cross country analyses exploring links between income and nutrition without insights on micro level determinants and relevant microeconomic studies hindered by small sample size and or incomplete data we use the rural samples of the three waves of the uganda national panel survey and estimate panel regressions of child height for age z scores haz controlling for time invariant child level heterogeneity on the whole we find no impact of short term changes in total gross income on haz but document small positive correlations for younger children sector differentiated analyses indicate that compared to wage earnings only share of income from non farm self employment correlates positively with haz within agriculture shares of income from consumption of own crop production and from low protein crop production underlie the negative effect of share of income from crop production while we cannot claim causal relationships our findings suggest the possibility of stickiness of crop production to own consumption

the economic theory of agrarian institutions introduction alternative approaches to the theory of institutions in economic development pranab bardhan rational peasants efficient institutions and a theory of rural organization methodological remarks for development economics joseph e stiglitz part 1 land and labour theories of sharecropping nirvikar singh a comparison of principal agent and bargaining solutions the case of tenancy contracts clive bell contracts with eviction in infinitely repeated principal agent relationships bhaskar dutta et al production relations in semi arid african agriculture hans binswanger et al part 2 credit and interlinked transactions rural credit markets the structure of interest rates exploitation and efficiency kaushik basu credit and agrarian class structure mukesh eswaran and ashok kotwal credit rationing tenancy productivity and the dynamics of inequality avishay braverman and joseph e stiglitz on choice among creditors and bonded labour contracts t n srinivasan some aspects of linked product and credit market contracts among risk neutral agents clive bell and t n srinivasan a note on interlinked rural economic arrangements pranab bardhan interlinkages and the pattern of competition debraj ray and kunal sengupta part 3 marketing and insurance agricultural institutions for insurance and stabilization david m newbery peasants risk aversion and the choice of marketing intermediaries and contracts a bargaining theory of equilibrium marketing contracts pinhas zusman part 4 co operatives technology and the state agricultural producer co operatives louis putterman institutional analysis of credit co operatives avishay braverman and j luis guasch agrarian structure technological innovations and the state alain de janvry et al

evaluation of alternatives for power system coordination and pooling in a competitive environment the paper defines and classifies essential issues that relate the need for electric power system coordination with the increasing development of competition principles are formulated and a coordination model and a market structure are proposed emphasizing the need for economic dispatch in the wholesale market a detailed comparison is made of the market and pooling implementations developed in argentina and chile countries that have pioneered the creation of competitive markets in the electric energy sector an evaluation of strengths and weaknesses of those two implementations is included

fuzzy adaptive particle swarm optimization for bidding strategy in uniform price spot market in a deregulated electricity market generators have to optimally bid to maximize their profit under incomplete information of other competing generators this paper addresses an optimal bidding strategy of a thermal generator in a uniform price spot market considering a precise model of nonlinear operating cost function and minimum up down constraints of unit commitment the bidding behaviors of other competing generators are described using normal probability distribution function bidding strategy of a generator for each trading period in a day ahead market is solved by fuzzy adaptive particle swarm optimization fapso where inertia weight is dynamically adjusted using fuzzy evaluation fapso can dynamically follow the frequently changing market demand and supply in each trading interval the effectiveness of the proposed approach is tested with examples and the results are compared with the solutions obtained using genetic algorithm ga approach and other versions of pso

government transaction policy and gresham s law abstract a search theoretic model is used to study how legal restrictions may account for the fact that gresham s law sometimes holds but other times fails legal restrictions is modeled here as policies that government adopts in the transactions with private agents such as at what prices it accepts a currency in exchange for goods and at what ratios it conducts currency exchange a government policy sufficiently favorable to light coins can induce the existence of an equilibrium where both coins circulate and light coins are even accepted at a premium a policy favorable to heavy coins may increase their value to such an extent that they are hoarded from circulation when this equilibrium did not exist without interventions

a search based theory of the on the run phenomenon we propose a model in which assets with identical cash flows can trade at different prices infinitely lived agents can establish long positions in a search spot market or short positions by first borrowing an asset in a search repo market we show that short sellers can endogenously concentrate in one asset because of search externalities and the constraint that they must deliver the asset they borrowed that asset enjoys greater liquidity a higher lending fee specialness and trades at a premium consistent with no arbitrage we derive closed form solutions for small frictions and provide a calibration generating realistic on the run premia

barter and monetary exchange under private information the authors develop a model of production and exchange with uncertainty concerning the quality of commodities and study the role of fiat money in ameliorating frictions caused by private information the model is specified so that without private information only high quality commodities are produced and there is no welfare gain from using money with private information there can be equilibria and sometimes multiple equilibria where low quality commodities are produced and money can increase welfare money works by promoting useful production and exchange in efficient monetary equilibria agents adopt strategies that increase the probability of acquiring high quality output copyright 1994 by american economic association

on the coexistence of money and higher return assets and its social role this paper adopts mechanism design to investigate the coexistence of at money and higherreturn assets we consider an economy with pairwise meetings where at money and riskfree capital compete as means of payment as in lagos and rocheteau 2008 the trading mechanism in pairwise meetings is chosen among all individually rational renegotiation proof mechanisms to maximize society s welfare we show that in any stationary monetary equilibrium capital commands a higher rate of return than at money

search bargaining money and prices the goal of this paper is to extend existing search theoretic models of fiat money which until now have assumed that the price level is exogenous by explicitly incorporating bilateral bargaining this allows us to determine the price level endogenously and leads to additional insights concerning the role of money for example we find that monetary equilibria are generally inefficient in the sense that output and prices differ from the solution to a social planner s problem although the difference can become small as the discount rate or search friction vanishes we also find that there exist nonstationary inflationary equilibria

information mobile telephony and traders search behavior in niger information and communications technologies have spread rapidly in developing countries we investigate the impact of mobile phones on traders search behavior in niger by constructing a theoretical model of search in which traders engage in sequential search for the optimal sales price using a trader panel dataset spanning 2005 2007 we find empirical support for the model in that the duration of mobile phone coverage is associated with increased search activity this effect evolves dynamically over time and is stronger for larger traders who engage in arbitrage over longer distances results provide empirical evidence for the observed linkages between mobile telephony and price dispersion

comprehensive bidding strategies with genetic programming finite state automata this research is an extension of the authors previous work in double auctions aimed at developing bidding strategies for electric utilities which trade electricity competitively the improvements detailed in this paper come from using data structures which combine genetic programming and finite state automata termed gp automata the strategies developed by the method described here are adaptive reacting to inputs whereas the previously developed strategies were only suitable in the particular scenario for which they had been designed the strategies encoded in the gp automata are tested in an auction simulator the simulator pits them against other distribution companies distcos and generation companies gencos buying and selling power via double auctions implemented in regional commodity exchanges the gp automata are evolved with a genetic algorithm so that they possess certain characteristics in addition to designing successful bidding strategies whose usage would result in higher profits the resulting strategies can also be designed to imitate certain types of trading behaviors the resulting strategies can be implemented directly in online trading or can be used as realistic competitors in an off line trading simulator

coexistence of money and interest bearing securities abstract a random matching model with money is used to study the nominal yield on small denomination bearer safe discount securities issued by the government there is always one steady state with matured securities circulating at par and for some parameters another with them circulating at a discount in the former a necessary and sufficient condition for a positive nominal yield on not yet matured securities is exogenous discriminatory treatment of them by the government in the latter the post maturity discount on securities induces a deeper pre maturity discount even without such discriminatory treatment

monetary policy and asset prices a mechanism design approach we investigate the eects of monetary policy on asset prices in economies where assets are traded periodically in over the counter otc markets with bilateral meetings between buyers and sellers the trading mechanism in pairwise meetings is designed to maximize social welfare taking as given the frictions in the environment e g lack of commitment and limited enforcement and monetary policy we show that asset price bubbles emerge in a constrained e cient monetary equilibrium only if liquidity is abundant and the rst best allocation is implementable in contrast if liquidity is scarce assets are priced at their fundamental value in any constrained e cient monetary equilibrium in which case an increase in in ation has no eect on asset prices but it reduces output and welfare finally for low in ation rates the bursting of an asset price bubble can be an optimal response to a shock that reduces assets resalability

the digital provide information technology market performance and welfare in the south indian fisheries sector when information is limited or costly agents are unable to engage in optimal arbitrage excess price dispersion across markets can arise and goods may not be allocated efficiently in this setting information technologies may improve market performance and increase welfare between 1997 and 2001 mobile phone service was introduced throughout kerala a state in india with a large fishing industry using microlevel survey data we show that the adoption of mobile phones by fishermen and wholesalers was associated with a dramatic reduction in price dispersion the complete elimination of waste and near perfect adherence to the law of one price both consumer and producer welfare increased

farmer bargaining power and market information services in many sub saharan african countries farmers typically have a choice between selling their products to traders who travel between villages and markets and transporting their products to the nearest market themselves because of communities remoteness and poor communications with marketplaces farmers uncertainty about market prices is usually high traders may take advantage of farmers ignorance of the market price and extract a rent from them by offering very low prices for their products in this article we model bargaining interactions between farmers and traders meeting at the farmgate and we study how price information affects the bargain and the balance of power we show the conditions for market information services mis to be profitable for farmers and examine efficiency issues associated with asymmetric information finally we test the model s prediction that information results in positive individual gain for farmers using original survey data collected in the northern region of ghana specifically we estimate the causal effect of a mobile based mis program on farmers marketing performances and find that farmers who have benefited from the mis program received significantly higher prices for maize and groundnuts about 10 more for maize and 7 more for groundnuts than what they would have received had they not participated in the mis program these results suggest that the theoretical conditions for successful farmer use of mis may be met in the field

mobile phone coverage and producer markets evidence from west africa mobile phone coverage has expanded considerably throughout the developing world particularly within sub saharan africa existing evidence suggests that increased access to information technology has improved agricultural market efficiency for consumer markets and certain commodities but there is less evidence of its impact on producer markets building on the work of aker 2010 this paper estimates the impact of mobile phone coverage on producer price dispersion for three commodities in niger the results suggest that mobile phone coverage reduces spatial producer price dispersion by 6 percent for cowpea a semi perishable commodity these effects are strongest for remote markets and during certain periods of the year the introduction of mobile phone coverage has no effect on producer price dispersion for millet and sorghum two staple grains that are less perishable and are commonly stored by farmers there are no impacts of mobile phone coverage on traders gross margins or producer price levels but mobile phone coverage is associated with a reduction in the intra annual price variation for cowpea these results are potentially explained by the fact that farmers engage in greater storage for storable commodities such as millet and sorghum

optimal electricity supply bidding by markov decision process the bidding decision making problem is studied from a supplier s viewpoint in a spot market environment the decision making problem is formulated as a markov decision process a discrete stochastic optimization method all other suppliers are modeled by their bidding parameters with corresponding probabilities a systematic method is developed to calculate transition probabilities and rewards a simplified market clearing system is also included in the implementation a risk neutral decision maker is assumed the optimal strategy is calculated to maximize the expected reward over a planning horizon simulation cases are used to illustrate the proposed method

a variance components approach to food grain market integration in northern nigeria a variance components methodology is developed for joint tests on a sample of time series of prices for seasonal differences in the price integration of markets the approach requires a statistically adequate number of observations for each market within seasons characterized by constancy of transactions costs among markets the model is applied to eighteen months of weekly grain prices for twenty two villages in northern nigeria results suggest that markets are not well integrated in the six months covering the harvest period implications are drawn for research on market performance in the region

networks distance and trust telecommunications development and changing trading practices in ghana summary ghana liberalized its telecommunications sector in 1995 this article examines the impact of the phenomenal growth in access to cell phones on informal traders business practices the study demonstrates how these telecommunication pioneers have changed their mode of operation to reduce both transportation and transaction costs it is argued that traders with access to tools for more efficient communication over long distances provide better services and create a higher profit potential than others it is further argued that adoption of new technology enhances trust building in trade networks thus facilitating a higher number of transactions in an uncertain economic environment

viewpoint a microfoundation of monetary economics in this lecture i explain what the microfoundations of money are about and why they are necessary for monetary economics then i review recent developments of a particular microfoundation of money commonly known as the search theory of money finally i outline some unresolved issues dans cette presentation l auteur explique ce que sont les microfondations de la monnaie et pourquoi elles sont necessaires a l economie monetaire ensuite il passe en revue certains developpements recents d une microfondation particuliere de la monnaie connue sous le nom de theorie de la recherche de la monnaie enfin l auteur fait le tour d un ensemble de problemes qui restent sans solution pour le moment

optimal response of a thermal unit to an electricity spot market this paper addresses the optimal response of a thermal unit to an electricity spot market the objective is to maximize the unit profit from selling both energy and spinning reserve in the spot market the paper proposes a 0 1 mixed integer linear programming approach that allows a rigorous modeling of i nonconvex and nondifferentiable operating costs ii exponential start up costs iii available spinning reserve taking into account ramp rate restrictions and iv minimum up and down time constraints this approach overcomes the modeling limitations of dynamic programming approaches and is computationally efficient results from realistic case studies are reported

liquidity and asset market dynamics this study analyzes economies with an essential role for liquid assets in the exchange process the model can generate multiple stationary equilibria across which asset prices market participation capitalization output and welfare are positively related it can also generate a variety of nonstationary equilibria even when fundamentals are deterministic and time invariant including periodic chaotic and stochastic sunspot equilibria with recurrent market crashes some equilibria have asset price trajectories that resemble bubbles growing and bursting endogenous private and public liquidity is also introduced sometimes it is efficient to provide enough liquid assets to satiate demand other times it is not

information efficiency and welfare in agricultural markets information and communications technologies icts have spread rapidly in the developing world there has been considerable interest in the potential role icts particularly mobile phones have begun to play in the marketing of agricultural outputs in these countries in this article we discuss the potential impacts icts may have on welfare both in terms of potential efficiency gains via improved arbitrage and welfare transfers among agents in the supply chain via reduced informational asymmetries and market power we also review the recent empirical evidence for such effects

thermal power generation scheduling by simulated competition this paper presents a new method for solving the unit commitment problem by simulation of a competitive market where power is traded through a power exchange px procedures for bidding and market clearing are described the market clearing process handles the spinning reserve requirements and power balance simultaneously the method is used on a standard unit commitment problem with minimum up down times start up costs and spinning reserve requirement taken into account comparisons with solutions provided by lagrangian relaxation genetic algorithms and chao an li s unit decommitment procedure demonstrate the potential benefits of this new method the motivation for this work was to design a competitive electricity market suitable for thermal generation scheduling however performance in simulations of the proposed market has been so good that it is presented here as a solving technique for the unit commitment problem

liquidity premia in dynamic bargaining markets abstract this paper develops a search theoretic model of the cross sectional distribution of asset returns abstracting from risk premia and focusing exclusively on liquidity in contrast with much of the transaction cost literature it is not assumed that different assets carry different exogenously specified trading costs instead different expected returns due to liquidity are explained by the cross sectional variation in tradeable shares the qualitative predictions of the model are consistent with much of the empirical evidence

shifting load through space the economics of spatial demand side management using distributed data centers demand side flexibility dsf in the electricity grid has become an active research area in recent years while temporal flexibility e g load shedding load shifting is already discussed intensively in literature spatial load migration still is an under researched type of dsf spatial load migration allows us to instantly migrate power consuming activities among different locations data centers dcs are power intensive and process information goods since information goods are easily transferable through communication networks power intensive processing of information goods is not necessarily tied to a specific location consequently geographically distributed dcs inherit in theory a considerable potential to globally migrate load we analyze the economics of spatially migrating load to provide balancing power using geographically distributed dcs we assure that neither of the participating electricity grids will be burdened by this mechanism by using historical data to evaluate our model we find reasonable economic incentives to migrate positive as well as negative balancing power in addition we find that current scenarios favor the migration of negative balancing power our research thus reveals realistic opportunities to virtually transfer balancing power between different market areas worldwide

is it enough evidence from a natural experiment in india s agriculture markets access to information and communication technologies icts such as mobile phone networks is widely known to improve market efficiency in this paper we examine whether access to timely and accurate information provided through ict applications has any additional impact using a detailed data set from reuters market light rml a text message service in india that provides daily price information to market participants we find that this information reduces the geographic price dispersion of crops in rural communities by an average of 12 over and above access to mobile phone technology and other means of communication to identify the effect of information on price dispersion we exploit a natural experiment where bulk text messages were banned unexpectedly across india for 12 days in 2010 we find that besides reducing geographic price dispersion rml also increases the rate at which prices converge across india over time we discuss the implications of this for development organizations and informat

a model of a currency shortage abstract until the mid 19th century shortages of currency were common moreover a frequent policy response was a prohibition on the export of coins we use a random matching model with indivisible money to explain a shortage and to judge the desirability of a prohibition on the export of coins the model although extreme in many regards represents better than earlier models a demand for outside money and the problems that arise when that money is indivisible it can also rationalize a prohibition on the export of money

infrastructure and rural development insights from a grameen bank village phone initiative in bangladesh abstract the intention of the present paper is to evaluate the role of telecommunications within the contexts of rural development in general and of poverty reduction in particular bangladesh has been selected as a case study due to the uniqueness it displayed in an innovative program for expanded telecom infrastructure in which grameen bank gb of bangladesh the village based micro finance organisation leased cellular mobile phones to successful members gb calls these phones village pay phones vpps the effects of vpps are assessed from two angles sellers of services telephone lessees owners and buyers of services villagers the findings of the study lead to two basic conclusions first pursuance of pragmatic policies can turn telephones into production goods especially through lowering transaction costs and second the services originating from telephones in villages are likely to deliver even more benefits to the poor than to the non poor the vpps also seem to have perceptible and positive effects on the empowerment and social status of phone leasing women and their households for villagers in general phones offer additional non economic benefits such as improved law enforcement more rapid and effective communications during disasters stronger kinship bonding etc gb s style of managing communications can help significantly to expand access to this vital information input for all segments of the population reduce inequality and thus enhance the broad based pro poor orientation of rural development activities

the implementation of an energy brokerage system using linear programming the authors focus on the economics involved in energy transfers the function of an energy brokerage system is to establish interchange schedules between participating utilities in such a manner as to maximize the resulting savings a brokerage system that uses linear programming lp is presented to maximize the savings or profits to each utility subject to import and export constraints the cost quotations can also be determined using an lp formulation two examples to illustrate this formulation are given

priced based operation in an auction market structure open transmission access is a new legal requirement within the electric power industry interchange will require evaluation of the existing conditions to determine if the product can be delivered at the time required and at the level awarded through the bidding or negotiation process this paper seeks to identify the likely deregulation details for a full market implementation when native load is considered equal to any other third party load comparability this paper seeks to identify the technical issues such as standards and algorithms necessary for changing the national infrastructure from a vertically integrated industry to a horizontally integrated industry

economic valuation of reserves in power systems with high penetration of wind power this paper proposes a methodology to determine the required level of spinning and nonspinning reserves in a power system with a high penetration of wind power the computation of the required reserve levels and their costs is achieved through a stochastic programming market clearing model spanning a daily time horizon this model considers the network constraints and takes into account the cost of both the load shedding and the wind spillage the methodology proposed is illustrated using an example and a realistic case study some conclusions are finally drawn

money and prices a model of search and bargaining abstract this paper makes commodities divisible and incorporates bargaining into the search theoretic model of money to determine the purchasing power of money or price it is shown that two monetary equilibria always coexist where fiat money is universally accepted the two equilibria differ in price output welfare and the velocity of money sunspot monetary equilibria exist in which money is universally accepted in all states of the economy multiplicity has novel implications on the effectiveness of currency substitution and exchange market intervention journal of economic literature classification numbers c78 e40

generation scheduling in a deregulated system the norwegian case the paper gives an overview of the deregulated electricity supply system in norway with emphasis on the generation scheduling approach procedures and tools for long medium and short term scheduling are described scheduling is carried out by each individual utility since scheduling is based on profit maximizing the spot market price is a very important factor this price is varying and uncertain however a part of the paper describes how to deal with this by considering the spot market price as an exogenously given stochastic variable it is shown how to extend the common water value computations so as to handle this case implications to the medium and short term scheduling are also discussed

the formulation of the optimal strategies for the electricity producers based on the particle swarm optimization algorithm in competitive electricity markets the producer as a market participant strives to find the optimal supply function with the objective of maximizing his her producer surplus in the market clearing the model of the producer surplus maximization is a bilevel mathematical programming problem within which the market clearing is taken into account by using the deterministic approaches it is difficult to obtain the global solution of the bilevel optimization problem even for a single hourly market clearing this is due to the fact that the objective function of such a problem is not concave and there are nonlinear complementarity terms introduced by using the kkt conditions to represent the market clearing when the bilevel optimization problem is modified to consider multiple hourly market clearings such as to maximize the total producer surplus in one day solving such a problem is almost intractable a heuristic approach should be another option for its simplicity and immunity to the local optimum the particle swarm optimization pso algorithm is employed in this paper to find the optimal supply function of the electricity producer based on the ieee 30 bus test system different simulation cases with respect to a single hourly market clearing and a daily market clearing are tested to show the efficiency and robustness of the pso algorithm in addition the parameterization techniques used in formulating the optimal supply function are analyzed based on the simulation results

price taker bidding strategy under price uncertainty this paper provides a framework to obtain the optimal bidding strategy of a price taker producer an appropriate forecasting tool is used to estimate the probability density functions of next day hourly market clearing prices this probabilistic information is used to formulate a self scheduling profit maximization problem that is solved taking advantage of its particular structure the solution of this problem allows deriving a simple yet informed bidding rule results from a realistic case study are discussed in detail

measurement of consumer gains from market stabilization for most cases of practical significance in which partial equilibrium analysis is appropriate there is little difference between exact measures of consumer gains from market stabilization and approximations such as expected change in marshallian or hicksian consumer surplus careful specification of the nature of stabilization is more crucial than the choice of welfare measure it is important to represent correctly the demand curvature and supply response and to determine whether general equilibrium responses can be ignored in any event an improved analytical approximation and a simple numerical method for calculating the exact measures make it unnecessary to rely on suspect measures

getting prices right the impact of the market information service in uganda the market information service project in uganda collected data on prices for the main agricultural commodities in major market centers and disseminated the information through local fmradio stations in various districts exploiting the variation across space between households with and without access to a radio we find evidence suggesting that better informed farmers managed to bargain for higher farm gate prices on their surplus production

liquidity a new monetarist perspective this essay surveys the new monetarist approach to liquidity work in this literature strives for empirical and policy relevance plus rigorous foundations questions include what is liquidity is money essential in achieving desirable outcomes which objects can or should serve in this capacity when can asset prices differ from fundamentals what are the functions of commitment and collateral in credit markets how does money interact with credit and intermediation what can and should monetary policy do the research summarized emphasizes the micro structure of frictional transactions and studies how institutions like monetary exchange credit arrangements or intermediation facilitate the exchange process

pairwise trade asset prices and monetary policy abstract we construct a search theoretic model where fiat money coexists with real assets and all assets can be used as a media of exchange the terms of trade in bilateral matches are determined by a pairwise pareto efficient pricing mechanism we do not have to appeal to exogenous liquidity constraints to generate asset prices that are consistent with the following facts i fiat money can be valued despite being dominated in its rate of return ii real assets with identical dividend flows can have different rates of return and iii an increase in inflation raises asset prices lowers their returns and widens the rate of return differences between assets on the normative side we show that there is a range of inflation rates that implement the first best allocation

multiperiod auction for a pool based electricity market this paper presents a market clearing tool for the market operator of a pool based electricity market for energy this tool is transparent and fair for the market participants and simple to implement and to interpret it preserves the privacy of the corporate information of the participants and provides the right signals to achieve economic efficiency furthermore it recognizes and properly models the technical physical and inter temporal constraints of the participant thermal power generators from a mathematical point of view the proposed tool results in a mixed integer linear programming problem that can be efficiently solved using currently available branch and cut software to illustrate the adequate functioning of the proposed market clearing procedure different realistic case studies are analyzed in detail

anticipated inflation and rates of return in a search theoretic monetary model abstract how does anticipated inflation of fiat money affect the real return of a near money an asset with real value used to mediate trades this essay studies a search model in which decentralized trade takes place under a fixed bargaining rule the essay analytically studies the comparative statics of a near money s real return as it varies with inflation the effects diverge markedly over the parameter space there exist parameters for which higher inflation lowers the real asset return as suggested by asset substitution theories there also exist parameters for which inflation has the opposite effect

strategic bidding in an energy brokerage this focus of this paper is to present a framework in which strategies may developed for the individual participants in an energy brokerage such a framework is expected to be important with the increasing interest in electricity market structures such as the energy brokerage that deregulation has produced to illustrate the process of strategic bidding a simple suboptimal bidding strategy is presented with the aid of a numerical example the bidding strategy must be suboptimal because of the amount of unknown information about the other bidders further tuning of this strategy will be required before application to realistic scenarios

a simulation model for a competitive generation market the simulation of a wholesale electricity market should go beyond a simple optimization based on the operating costs of the generating units a model of a competitive electricity market must consider the market structure the strategy of the market participants and any other factor that lead to prices different from costs this paper presents cosmee a model of a wholesale electricity market based on simple bids that estimates expected bid prices and quantities system hourly prices and generation schedules taking into account the bidding strategies of generators and the structure of the market the model reflects the profit maximizing behavior of the market agents subject to different types of constraints cosmee has been used to simulate a real wholesale market