Investigating Pure Bundling in Japan’s Electricity Procurement Auctions

• Published in: Mathematics (Basel) Vol. 9; no. 14; p. 1622
• Main Author: Suzuki, Ayako
• Format: Journal Article
• Language: English
• Published: Basel MDPI AG 09.07.2021
• Subjects: Asymmetry; Auctioning; Auctions; Bids; Bundling; Competition; Contracts; Costs; Efficiency; Electricity; Electricity distribution; Investigations; Mathematics; Participation; procurement auction; Procurement contracts; Valuation; Japan

This study investigates the effect of bundling contracts on electricity procurement auctions in Tokyo. We conduct structural estimations that include elements of asymmetry between the incumbent and the new entrant firms and that endogenize the participation of bidders, and investigate the effect of...