•Uniform
Price Auction:
Øall
winners are paid “the” market clearing price (e.g., the
lowest losing bid)
Øbidders
have incentives to bid true costs
Øused
in the major pools (NE, NY, PJM)
•Pay-as-Bid
Auction:
Øall
winners get paid what they bid
Øbidders
want to bid above costs and close to expected market clearing
prices
Øused
in bilateral markets
Ø