February 4, 2005
All rights reserved to Shmuel Oren, UC Berkeley
PSERC
Rational Buyer Auctions
(Min procurement cost)
dSP=500
dRG=500
Regulation
15
10
20
 5
Spin
200
500
700
600
Procurement Cost ($) Social Cost ($)
14,000      11,000
Saves (black):4500
Spends (red): 2000
Difference: 2500
+
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