February 4, 2005
All rights reserved to Shmuel Oren, UC Berkeley
PSERC
Conclusions
nIf gaming is possible it will happen
nMarket design must be proactive in anticipating perverse incentives and gaming opportunities
nStructural solutions and incentive mechanisms are preferred but not always possible
nEx- post market power mitigation too cumbersome and ineffective
nOn line ex-ante
intervention is needed to mitigate market
failure and regulate behavior but distortions should be minimized.