Turning On The Lights: Deregulating The Market for Electricity

Studies | Regulations

No. 228
Friday, October 01, 1999
by Vernon L. Smith and Stephen Rassenti

About the Authors

Vernon L. Smith is Regents' Professor and McClelland Professor of Economics at the University of Arizona and Research Director of the Economic Science Laboratory, where he leads research in the areas of neuro-economics and complex trading systems. He received his bachelor's degree in Electrical Engineering from Cal Tech, and his Ph.D. in Economics from Harvard. He has been president of the Public Choice Society, the Economic Science Association, the Western Economic Association and the Association for Private Enterprise Education; and a Fellow of the Ford Foundation, the Center for Advanced Study in the Behavioral Sciences, the Econometric Society, the American Association for the Advancement of Science, the American Academy of Arts and Sciences and the American Economic Association. Professor Smith's Papers on Experimental Economics was published by the Cambridge University Press in 1991. He is an Andersen Consulting Professor of the Year, and the 1995 Adam Smith award recipient from the Association for Private Enterprise Education. He was elected a member of the National Academy of Sciences in 1995. He recently served on the National Electric Reliability Council Blue Ribbon Panel on Electric Reliability, and has consulted internationally on the deregulation and privatization of electric power.

Stephen Rassenti is the Associate Director of the Economic Science Laboratory, and Vice President of Cybernomics Inc., a company that consults in the use of experiments to examine strategic market dynamics. He received his bachelor's degree in mathematics from Loyola of Montreal, and his Ph.D. in Systems Engineering from the University of Arizona. He has worked for Bell Laboratories as a system performance analyst, and was, prior to receiving his Ph.D., the owner of a construction company. He is interested in the design of new market institutions and the application of smart computer assistance in complex economic environments. He is currently a co-principal investigator on a National Science Foundation/Environmental Protection Agency study of a deregulated water market for the State of California, and has conducted funded research for the Federal Energy Regulatory Commission and the Energy Information Administration concerning centrally coordinated dispatch for a national natural gas market. He has consulted with the National Grid Management Council in evaluating the proposed market rules for Australia's nationally coordinated power market, and has presented seminars and workshops on the deregulation of electric power to the Electric Power Research Institute, Edison Electric Institute and many domestic and international utilities and interest groups.

Read Article as PDF