(hereafter " Final Report "). ISO-NE is the private, non-profit entity that serves as the regional transmission organization (" RTO ") for New England. ISO-NE operates the New England bulk power system and administers New England's organized wholesale electricity market pursuant to the ISO New England Transmission, Markets and Services Tariff and the Transmission Operating Agreement with the Ne...

This chapter explores the state of the emerging practice of designing markets by the use of agent-based modeling, with special reference to electricity markets and computerized (on-line) markets, perhaps including real-life electronic agents as well as human traders. The paper first reviews the use of evolutionary and agent-based techniques of analyzing market behaviors and market mechanisms, a...

This paper is concerned with the mathematical analysis of emissions markets. We review the existing quantitative analyses on the subject and introduce some of the mathematical challenges posed by the implementation of the new phase of the European Union Emissions Trading Scheme as well as the cap-and-trade schemes touted by the US, Canada, Australia and Japan. From a practical point of view, th...

The dynamics of a financial market with heterogeneous agents are analyzed under different market architectures. We start with a tractable behavioral model under Walrasian market clearing and simulate it under different trading protocols. The key behavioral feature of the model is the switching by agents between simple forecasting rules on the basis of a fitness measure. By analyzing the dynamic...

The analysis to date of sponsored search auctions, originally conducted by Varian and independently by Aggarwal et al., has yet to describe more recent developments such as the emergence of interacting advertising exchanges. This paper assess the significance of such phenomena. Building on Gonen and Vassilvitskii’s model of sponsored search with reserve prices we depict advertising networks as ...

1 Advances in electricity generation and storage technologies coupled with declines in cost, the planned roll-out of smart metering and favourable regulation have all led to a rapid increase in the number of consumers in Europe and the USA producing or storing electricity at home — through solar panels1, electric vehicles2, batteries3 or other means. In the UK, for instance, by the end of Decem...

Market Design is an emerging field that seeks to provide a practical solution for various resource allocation problems. The current article discusses several issues arising in real-world market design, innovative ideas proposed to overcome those issues, and their applications in areas such as spectrum licenses allocation, Internet sponsored-search advertising, housing allocation, public school ...

This study reports of a series of experiments of the proposed Swedish-Norwegian green certificates market. The experiments were carried out at NTNUs Experimental Economics Energy Market Laboratory (EEEMiL) using graduate students from engineering and economics as subjects. The main purpose of the experiments was to test how a) floating versus fixed price caps and b) banking of TGCs influenced t...