factual

Neoclassical Tools Earned Markets in Electric Power

The traditional mathematical and auction-theory framework is genuinely valuable for engineering applications: Smith and Rassenti used it to design experiments showing skeptics that competitive wholesale markets for electric power could work, helping Australia move from state-owned power to a national wholesale electricity market by 1998.

factualpending

Speaker

Vernon Smith

Evidence Quote

we could put these people into experiments. It turns out they made a market just fine... The Australians created the National Grid Management Council... that was 1996, and 1998 they were all creating a market.

Source

Vernon Smith on Adam Smith and the Human EnterpriseEconTalk
Created: 6/13/2026, 12:22:45 AM

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