Peter Cramton

Does Financial Trading Smooth Non-Convex Markets?

Nicolas Stevens, Peter Cramton, Martial Toniotti

In non-convex markets, a competitive equilibrium may fail to exist. This turns out to be an important issue in real-world non-convex auction markets, such as electricity markets, as it complicates pricing and requires the auctioneer to resort to out-of-market discriminatory side…Read more