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Article #107Re: Outsider viewpoint of CA power crisis
From: John Navas
Date: Mon, 21 May 2001 20:02
Date: Mon, 21 May 2001 20:02
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[POSTED TO ba.general - REPLY ON USENET PLEASE] In <B72E9045.3D9C6%no-spam@RadioMonopoly.com> on Mon, 21 May 2001 09:28:38 -0700, John Higdon <no-spam@RadioMonopoly.com> wrote: >in article rG8O6.150$sA6.9814@typhoon.sonic.net, John Navas wrote: > >> I think it quite possible that prices will settle in at the cap, the >> most we are willing to pay. > >Only at times of peak demand. The rest of the time, even in our current >condition, there is room to pick and choose. Whoever sells the power gets >the money; the rest get nothing regardless of how much they wanted to get. The problem with that logic is that sellers know the highest price you are willing to pay, which substantially reduces their motivation to bid lower prices. Because there are relatively few sellers with considerable market power, normal supply and demand doesn't necessarily apply. >> The danger is that our total cost might >> well go up if the cap is set too high, and that it might not be worth >> the damage to the economy if the cap is set too low, a tough balancing >> act indeed. > >The equilibrium of the marketplace is, by definition, a balancing act. Different kind of equilibrium. The smart buyer never discloses to sellers the actual highest price the buyer is willing to pay. -- Best regards, John Navas <http://navasgrp.home.att.net/>
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X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: 10b619,af5e5edc3039a6a2 X-Google-Attributes: gid10b619,public X-Google-Thread: f824f,af5e5edc3039a6a2 X-Google-Attributes: gidf824f,public X-Google-Thread: 107d03,af5e5edc3039a6a2 X-Google-Attributes: gid107d03,public X-Google-ArrivalTime: 2001-05-21 13:02:10 PST Path: arc1-ca.pugleaf.net!archiver1.google.com!newsfeed.google.com!newsfeed.stanford.edu!news-spur1.maxwell.syr.edu!news.maxwell.syr.edu!newsfeed.cwix.com!typhoon.sonic.net!not-for-mail From: John Navas <spamfilter@navasgrp.dublin.ca.us> Newsgroups: sdnet.general,ba.general,la.general Subject: Re: Outsider viewpoint of CA power crisis Organization: The Navas Group, Dublin, CA, USA References: <9e1rc7$gdj$1@slb1.atl.mindspring.net> <9e1ues$bhp$1@agate.berkeley.edu> <3b048770$0$193$e2e8da3@nntp.cts.com> <C_%M6.206$1R4.7766@typhoon.sonic.net> <B729FCC4.3D626%no-spam@RadioMonopoly.com> <rG8O6.150$sA6.9814@typhoon.sonic.net> <B72E9045.3D9C6%no-spam@RadioMonopoly.com> X-Newsreader: Forte Agent 1.8/32.548 MIME-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Lines: 35 Message-ID: <4veO6.207$sA6.10935@typhoon.sonic.net> Date: Mon, 21 May 2001 20:02:08 GMT NNTP-Posting-Host: 209.204.185.87 X-Complaints-To: abuse@sonic.net X-Trace: typhoon.sonic.net 990475328 209.204.185.87 (Mon, 21 May 2001 13:02:08 PDT) NNTP-Posting-Date: Mon, 21 May 2001 13:02:08 PDT