The hottest Market design Substack posts right now

And their main takeaways
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Top U.S. Politics Topics

Market Design and Negative Prices

Knowledge Problem • 78 implied HN points • 02 Nov 23
💼 Business Market design
  1. Power markets face criticism due to inherent design and governance issues.
  2. Negative prices indicate market disruptions caused by startup costs, congestion, or government policies.
  3. Market design must adapt to handle subsidies ensuring price signals align with efficiency goals.

Epistemology and Synthetic Market Design: Examples from Ecosystem Services

Knowledge Problem • 176 implied HN points • 30 Jun 23
📖 Philosophy Epistemology Market design Institutions Policy
  1. Some of the most illuminating work in market design has been in payment for ecosystem services (PES).
  2. Synthetic markets and deliberate institutional design are criticized for being epistemic and teleological.
  3. Testing is essential in synthetic market design to understand how people respond to incentives in different institutional frameworks.

Market Adaptation to Changing Conditions

Knowledge Problem • 117 implied HN points • 16 Jun 23
💰 Finance Market design
  1. Electricity markets face challenges from changing conditions like weather patterns and economic growth
  2. Uniform price auctions in power markets provide dynamic incentives for investment and efficiency
  3. Commissioner Christie's suggestion of discriminatory price auctions may not address the existing flaws in wholesale power market designs

Market Design in Regulated Industries

Knowledge Problem • 39 implied HN points • 19 Oct 23
💼 Business Market design
  1. Transitioning from heavily regulated industries to organic market processes is unlikely to be organic due to embedded special interests.
  2. In regulated industries like electricity, designing market rules is necessary to prevent favoring existing incumbents.
  3. Market institutions need to be deliberately designed in less-than-organic circumstances, introducing a political dimension to the process.
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