An Experimental Analysis of Irish Electricity Auctions

The authors study alternative auction design mechanisms in the delivery of electricity in Ireland, describe the institutional changes that have happened to the Irish electricity market since 2007, and design an experiment to test whether the current market design results in the induced revelation of true marginal costs by bidders. They find that it does not, and demonstrate experimentally that, were the auction mechanism to change to a dynamic auction, lower electricity prices would result.