•Same
assumptions as before excepting that:
ØExampleGen
forecasts that the highest winning bid is either $37/MWh, $42/MWh or $47/MWh with 1/3 probability
each
•[Uniform price
auction] ExampleGen’s optimal bidding strategy is to bid $35/MWh
•[Pay-as-bid auction]
ExampleGen’s optimal bidding strategy
is to bid $42/MWh
ØIn effect,
withholding output even when “market price” is $37/MWh
•
•