Good video, well explained, neat graphics that help following up on the explanation. Maybe turn down music while voice is present just a tiny notch. Well done!
In the pay-as-bid model, why would the sellers of inframarginal electricity not set their bids to a level which they anticipate the pay-as-clear level to be?
Maybe the best thing would be to remove the market completely from the electric production system and just let the government regulate production and price, plan, incentivize where needed. Get the profit incentive out of this basic necessity for people.
Price for consumers: Pay as bid - £1+£2+£10=£13 Pay as clear - £10+£10+£10=£30 Now, which do you think is better for the consumer? And which one do you think the energy market has chosen?
So "Pay as clear" or "Pay as clear" is a way of guaranteeing ridiculous profits to all but the most expensive market participants? Clearly this will make cheap to produce participants charge close to, but just below what they know will be the price of the most expensive ones cost to produce, ensuring a ludicrous profit, and keeping the price high for the consumer - so that's why the gas price is setting the market cost - because this is basically an uncompetitive market - amazed more people don't protest this ridiculous system, ^oo^
How is it ludicrous? That’s how any commodity market works, if 100 potato sellers arrive at a market, then everyone will sell at the price set by the producer with the highest marginal cost. Why are leftists incapable of understanding basic economic mechanics?
@@ashleigh3021 Hilarious - I'm a 'leftist' trader apparently - that's a new one - oddly enough, I wouldn't have a lovely house if it wasn't for taking advantage of market inefficiencies - Have you heard of arbitrage? No, you must be right, all assets are only available at the maximum price of the weakest producer, and vast financial industries based on the exact opposite of that are illusory - roll on your communist vision of capitalism when are prices are set by the weakest, ^oo^
Good video, well explained, neat graphics that help following up on the explanation.
Maybe turn down music while voice is present just a tiny notch.
Well done!
Really clear explanation, Thank you,!
In the pay-as-bid model, why would the sellers of inframarginal electricity not set their bids to a level which they anticipate the pay-as-clear level to be?
Maybe the best thing would be to remove the market completely from the electric production system and just let the government regulate production and price, plan, incentivize where needed. Get the profit incentive out of this basic necessity for people.
Price for consumers:
Pay as bid - £1+£2+£10=£13
Pay as clear - £10+£10+£10=£30
Now, which do you think is better for the consumer?
And which one do you think the energy market has chosen?
excellent vid
thanks!
WTF 12 likes. Well done video. Tx
So "Pay as clear" or "Pay as clear" is a way of guaranteeing ridiculous profits to all but the most expensive market participants? Clearly this will make cheap to produce participants charge close to, but just below what they know will be the price of the most expensive ones cost to produce, ensuring a ludicrous profit, and keeping the price high for the consumer - so that's why the gas price is setting the market cost - because this is basically an uncompetitive market - amazed more people don't protest this ridiculous system, ^oo^
How is it ludicrous? That’s how any commodity market works, if 100 potato sellers arrive at a market, then everyone will sell at the price set by the producer with the highest marginal cost.
Why are leftists incapable of understanding basic economic mechanics?
@@ashleigh3021 Hilarious - I'm a 'leftist' trader apparently - that's a new one - oddly enough, I wouldn't have a lovely house if it wasn't for taking advantage of market inefficiencies - Have you heard of arbitrage? No, you must be right, all assets are only available at the maximum price of the weakest producer, and vast financial industries based on the exact opposite of that are illusory - roll on your communist vision of capitalism when are prices are set by the weakest, ^oo^
Amen