The Smart Grid , Entry , and Imperfect Competition in Electricity Markets

  title={The Smart Grid , Entry , and Imperfect Competition in Electricity Markets},
  author={Hunt Allcott},
Most US consumers are charged a near-constant retail price for electricity, despite substantial hourly variation in the wholesale market price. The Smart Grid is a set of emerging technologies that will facilitate "real-time pricing" for electricity and increase price elasticity of demand. This paper simulates the e¤ects of this increased demand elasticity using counterfactual simulations in a structural model of the Pennsylvania-Jersey-Maryland electricity market. The model includes a di¤erent… CONTINUE READING


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