Rosellon, Juan; Weigt, Hannes - Centro de Investigación y Docencia Económicas (CIDE) - 2008
This paper examines the Hogan-Rosellón-Vogelsang (2007) (HRV) incentive mechanism for transmission expansion, and tests it for different network topologies. This new mechanism is based upon redefining transmission output in terms of point-to-point transactions or financial transmission rights...