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I know very little about how the energy market actually functions so this might be a silly question.
Actual firms use mostly cost+ pricing. That is one of the most accessible empirical critiques of neoclassical economics. Yet the energy market is dominated by a spot market using marginal pricing that doesn't seem to work for anyone. Why?
by generic on Sun Feb 24th, 2013 at 05:40:49 PM EST

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