• Environmental and Resource Economics Review
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• v.19 no.1
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• pp.23-43
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• 2010

This article compares two different auction designs for $CO_2$ emission allowances, namely uniform pricing and multiple pricing, in view of market efficiency. Experimental economic method of Buckley et al. (2004) is applied in this analysis. As a result of this analysis as expected, multiple pricing method brings out Winner's curse. It means that uniform pricing method is more efficient than multiple pricing method.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.52 no.6
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• pp.333-339
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• 2003

Competition among electric generation companies is a major goal of restructuring in the electricity industry. In electricity market, a huge volume of commodities will be traded through competitive bidding. The choice between uniform and pay-as-bid pricing for electricity auction has been one of most important issues in deregulated electricity market. This paper proposes a constrained Bertrand model for analyzing the electricity auction market of price competition model. The issue of the two pricing rules of uniform and pay-as-bid is studied from the viewpoint of consumer's benefit. This paper also shows that transmission congestion depends on the pricing mechanism. Pay-as-bid pricing gives less possibility of transmission congestion by price competition, and less burden to consumers in the simulation results.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.52 no.10
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• pp.610-615
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• 2003

With the growing competitive pressure from market participants, utilities, consumer and government, analyses of existing competitive electricity market become more important. The presence of congestion in the transmission system can significantly increase the potential of exercising market power. Since the congestion in the network depends on the several factors, the market power cannot be simply analyzed through the existing indices. This paper presents a systematic analysis on local market power under uniform pricing scheme and provides determining approach of the level of price cap as mitigation measure of the strategic market power.

• Health Policy and Management
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• v.18 no.3
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• pp.128-146
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• 2008

Nonlinear pricing abounds in practice because it is a potentially powerful pricing method to explore consumer surplus. The various forms of nonlinear pricing are feasible within a given industry. In this context, it is important for manufacturers and retailers to understand which nonlinear pricing scheme is appropriate to apply in their specific situation and which nonlinear pricing schedule is the most profitable in their market situation. Although the merits of nonlinear pricing are well documented, the attempt to apply nonlinear pricing in medical service has been relatively rare. The researcher aims to try to full this gap by applying a practice-oriented simulation model to health examination data. We compare the sales volumes among nonlinear pricing scheme such as n-block tariff, two-part tariff, and uniform pricing. We found that n-block tariff outperforms two-part tariff and uniform pricing.

• Asia-Pacific Journal of Business
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• v.11 no.1
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• pp.17-26
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• 2020

Purpose - This paper studies the welfare impacts of behavior-based price discrimination (BBPD) when firms are asymmetric in quality improvement costs. Design/methodology/approach - To this end, we consider a differentiated duopoly model with an inherited market share, where firms first make quality decisions and then compete in prices according to the pricing scheme, namely, uniform pricing or BBPD. Findings - We show that BBPD increases social welfare relative to uniform pricing if the firms' cost gap is large enough. This is because BBPD induces more consumers to buy a high-quality product than under uniform pricing, and because a low-cost firm's profit loss from BBPD decreases as the cost difference increases. Research implications or Originality - Our analysis offers policy implications for markets where BBPD raises antitrust concerns, and quality competition prevails.

• Health Policy and Management
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• v.13 no.4
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• pp.84-98
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• 2003

This research objective is to determine the optimal price break points for n­block tariff, because comparing non­linear pricing with uniform pricing on the basis of profit, n­block tariff outperforms two­part tariff, all unit discount price schedule, and uniform pricing. Although the merits of non­linear pricing are well documented, the attempt to practice the non-linear pricing in medical service sector has been relatively rare. The determination of the parameters under n­block tariff is the interesting decision making agenda for marketers. Under n­block tariff, the marketers should decide the optimal price break points and the optimal marginal price for each price zone. The results can be summarized as follows: The researchers found that mixture model can be the feasible methodology for determining the optimal number of n­block tariff and identifying the optimal segmentation criteria. We demonstrate the feasibility and the superiority of the mixture model by applying it to the database of medical examination. The results appear that the number of patients per month can be the optimal segmentation variable. And 6­block tariff is the optimal price break for this medical service.

• Proceedings of the KIEE Conference
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• 2002.11b
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• pp.101-104
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• 2002

With the growing competitive pressure from market participants, utilities, consumer and government, analyses of existing competitive electricity market become more important. The presence of congestion in the transmission system can significantly increase the potential of exercising market power. Since the congestion in the network depends on the several factors. the market power cannot be simply analyzed through the existing indices. This paper presents a systematic analysis on local market power under uniform pricing scheme and provides some mitigation of the strategic market power.

• Proceedings of the KIEE Conference
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• 2003.07a
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• pp.590-592
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• 2003

The presence of congestion in transmission system can reduce the market size and split bulk system into smaller system. Consequently, this creates the problem concerining Local Market Power and can be main reason for the inclose of practical market price. In this paper, a range of indices have been derived to quantify the degree of local market power through statistical analysis in the uniform pricing market. Application of the indices has been illustrated using the electricity market in Korea. The indices proposed in this paper seem to be effectively applied in electricity market under uniform pricing scheme.

• KIEE International Transactions on Power Engineering
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• v.5A no.1
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• pp.85-92
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• 2005

In this paper, Nash equilibriums of generation markets are investigated using a game theory application for simplified competitive electricity markets. We analyze the characteristics of equilibrium states in N-company spot markets modeled by uniform pricing auctions and propose a new method for obtaining Nash equilibriums of the auction. We assume that spot markets are operated as uniform pricing auctions and that each generation company submits its bids into the auction in the form of a seal-bid. Depending on the bids of generation companies, market demands are allocated to each company accordingly. The uniform pricing auction in this analysis can be formulated as a non-cooperative and static game in which generation companies correspond to players of the game. The coefficient of the bidding function of company-n is the strategy of player-n (company-n) and the payoff of player-n is defined as its profit from the uniform price auction. The solution of this game can be obtained using the concept of the non-cooperative equilibrium originating from the Nash idea. Based on the so called residual demand curve, we can derive the best response function of each generation company in the uniform pricing auction with N companies, analytically. Finally, we present an efficient means to obtain all the possible equilibrium set pairs and to examine their feasibilities as Nash equilibriums. A simple numerical example with three generation companies is demonstrated to illustrate the basic idea of the proposed methodology. From this, we can see the applicability of the proposed method to the real-world problem, even though further future analysis is required.

• Proceedings of the KIEE Conference
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• 2003.07a
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• pp.649-651
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• 2003

In the framework of competitive electricity market, the Market Power due to the transmission congestion, lack of demand-side response, various uncertain factors etc. have been significant problem. This paper reviews the market rules of Korea power system and the uplift scheme for constrained on/off generators. Then, this paper points out several problems and the mitigation measures of local market power concerning the compensation for constrained-off generators.