The idea that "average-cost" pricing is more efficient than marginal-cost pricing.
: Because of uncoordinated policies, the market often swings between having too much power (low prices, no investment) and not enough power (rolling blackouts and price spikes) Congestion and Locational Pricing power system economics steven stoft pdf
As Steven began his work, he handed out copies of his book, "Power System Economics," to the island's leaders and engineers. The book would serve as a guide to help them navigate the complex world of power system economics. The idea that "average-cost" pricing is more efficient