• Ariel Pakes


Just starting out: Learning and equilibrium in a new market. Ariel Pakes, March 11, 2015, Paper. "Deregulation of the frequency response market in the UK allowed electricity firms to compete on price in an otherwise stable environment. We provide an analysis of the evolution of the deregulated market from the date it started. Initial activity was volatile, with some firms exploring different prices, while others made few price changes. This was followed by a period in which prices fell and the variance in the cross sectional distribution of bids declined markedly. By the end of our study price changes had become relatively rare and small, consistent with convergence to a static Nash equilibrium...Link