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Article #108Re: Outsider viewpoint of CA power crisis
From: John Higdon
Date: Mon, 21 May 2001 23:15
Date: Mon, 21 May 2001 23:15
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in article 4veO6.207$sA6.10935@typhoon.sonic.net, John Navas wrote: > The problem with that logic is that sellers know the highest price you > are willing to pay, which substantially reduces their motivation to bid > lower prices. Because there are relatively few sellers with > considerable market power, normal supply and demand doesn't necessarily > apply. It certainly does during off-peak periods. There is plenty of loose power during off-peak times and moderate-climate days. You may indeed end up paying your top-dollar amount during the tightest supply periods...but isn't that better than just paying "the sky's the limit"? > Different kind of equilibrium. > > The smart buyer never discloses to sellers the actual highest price the > buyer is willing to pay. Does the Buyer's Cartel have to reveal today's "top price"? A supplier can quote the rate and the cartel can say "no thanks". Only if the sellers get together and talk amongst themselves about the rates being charged (otherwise known as "collusion") would they even be able to figure out today's cap. Tomorrow's cap is a new ball game. -- John Higdon | Email Address Valid | http://www.anntec.com/ +1 408 264 4115 | Silicon Valley, CA | FAX: +1 408 264 4407 Cheap, provincial San Franciscans can call: 415 428-COWS
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X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: 10b619,af5e5edc3039a6a2 X-Google-Attributes: gid10b619,public X-Google-Thread: f824f,af5e5edc3039a6a2 X-Google-Attributes: gidf824f,public X-Google-Thread: 107d03,af5e5edc3039a6a2 X-Google-Attributes: gid107d03,public X-Google-ArrivalTime: 2001-05-21 16:17:13 PST User-Agent: Microsoft-Outlook-Express-Macintosh-Edition/5.02.2022 Date: Mon, 21 May 2001 16:15:25 -0700 Subject: Re: Outsider viewpoint of CA power crisis From: John Higdon <no-spam@RadioMonopoly.com> Newsgroups: sdnet.general,ba.general,la.general Message-ID: <B72EEF9D.3DA22%no-spam@RadioMonopoly.com> References: <9e1rc7$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> <4veO6.207$sA6.10935@typhoon.sonic.net> Mime-version: 1.0 Organization: Green Hills and Cows Content-Type: text/plain; charset="US-ASCII" Content-transfer-encoding: 7bit NNTP-Posting-Host: 131.161.250.162 X-Trace: 21 May 2001 16:15:25 -0800, 131.161.250.162 Lines: 29 Path: arc1-ca.pugleaf.net!archiver1.google.com!newsfeed.google.com!sn-xit-02!supernews.com!news.tele.dk!216.218.192.242!news.he.net!news.kjsl.com!news.announcetech.com!131.161.250.162