The Value of Dynamic Pricing in Mass Markets

Short- and long-run time-of-use price elasticities in Swiss residential electricity demand

“…The electric utilities collected monthly data on the electricity usage of each of the selected customers during various daily time periods and thus were able to construct an interesting data set on residential electricity consumption according to time-of-use. One of the most recent experiments has been organized in 2001 in the US by Puget Sound Energy with about 240000 customers (see Faruqui and George 2002). In Europe some experiments have been organized in France (see Aubin et.…”

The effect of customer participation in electricity markets: an experimental analysis of alternative market structures

“…In fact, these individual demand relationships are decomposed from an aggregate demand function, shown in Fig. 3 that has a retail price elasticity of demand at the mean price of -.3, Faruqui and George [3]. Furthermore, the overall demand function ranging from very low prices to the reservation price was given the inverted S-shape suggested by Schulze's work (reported by Woo, et.…”

“…Typically, substitutable electricity purchases are valued less than the regular purchases in each of these periods, and substitutable night energy is valued less than if it is used during the day. These substitutable blocks were also decomposed from the aggregate demand curve that has an elasticity of substitution between day and night usage of .3, Faruqui and George [3]. Thus, the buyer is confronted with an inter-temporal optimization problem.…”

Los Precios Del Mercado Mayorista De Electricidad Como Expresión De La Participación Activa De La Demanda: Aplicación De La Economía Experimental

“…El análisis económico de este tipo de producto, indica que la tasación dinámica en tiempo real proporciona, muchos mayores beneficios económicos que la tradicional tasación por tiempo-de-uso (Adilov, Schuler, Schulze, & Toomey, 2004;Borenstein, 2003;Faruqui, 2002).…”

“…También es conocida como tasación dinámica; la cual, desarrolla productos que se refieren a cualquier tarifa de electricidad donde la duración y los precios no son conocidos o definidos de antemano. Los productos de la tasación en tiempo real ofrecen un rango de opciones al re-balance del riesgo, y dan premios repartidos entre el proveedor y el consumidor, por medio de una combinación de precios fijos, de precios de mercado y de contratos de opciones de futuros.El análisis económico de este tipo de producto, indica que la tasación dinámica en tiempo real proporciona, muchos mayores beneficios económicos que la tradicional tasación por tiempo-de-uso (Adilov, Schuler, Schulze, & Toomey, 2004;Borenstein, 2003;Faruqui, 2002). …”