🚀 go-pugleaf

In article <B72EEF9D.3DA22%no-spam@RadioMonopoly.com>, John Higdon wrote:
>in article 4veO6.207$sA6.10935@typhoon.sonic.net, John Navas  wrote:
>
>> The problem with that logic is that sellers know the highest price you
>> are willing to pay, which substantially reduces their motivation to bid
>> lower prices.  Because there are relatively few sellers with
>> considerable market power, normal supply and demand doesn't necessarily
>> apply.
>
>It certainly does during off-peak periods. There is plenty of loose power
>during off-peak times and moderate-climate days. You may indeed end up
>paying your top-dollar amount during the tightest supply periods...but isn't
>that better than just paying "the sky's the limit"?
>
>> Different kind of equilibrium.
>> 
>> The smart buyer never discloses to sellers the actual highest price the
>> buyer is willing to pay.
>
>Does the Buyer's Cartel have to reveal today's "top price"? A supplier can
>quote the rate and the cartel can say "no thanks". Only if the sellers get
>together and talk amongst themselves about the rates being charged
>(otherwise known as "collusion") would they even be able to figure out
>today's cap. Tomorrow's cap is a new ball game.

	I heard a short while ago that part of the problem is that the law,
as originally formulated by our so-enlightened legislators in 1996, said, in
effect, that if the price company A charged in any given hour was xxx, then
that same price had (by law) to be paid to company B and company C, etc, for
that hour. If company C offered its power for xxx - 2 (say), too bad. xxx
was 'the' price they all would get. I guess this was intended to work the
OTHER way -- that the xxx would be very low and this same price would then
(by law) be paid to all those who supplied power. Yuh.

	The 'law of unintended consequences' seems to've teamed up with
Murphey's law with the result that xxx is very high and they all are paid
this same amount. Well, duh! You mean those super expensive people we pay to
draft (mostly absurd) legislation couldn't see that one coming?

	I think the FIRST place to be subject to a rolling blackout should
be the California state assembly/senate buildings. Let THEM suffer with 85
degree-plus temps this summer with no air conditioning. After all, they
started alla this..

-- 
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