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Economics

Simple market models fail the test

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An analysis of energy markets with prices that vary according to demand finds that this market design unexpectedly serves to amplify, rather than dampen, fluctuations in power use.

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Figure 1: Synchronization spikes.

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References

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Correspondence to Alex Pentland.

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Pentland, A. Simple market models fail the test. Nature 525, 190–191 (2015). https://doi.org/10.1038/nature15215

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