If the motel industry runs more smoothly because motel room prices are free to fluctuate in response to changes in demand, why not let retail energy prices operate freely, too? Laboratory simulations of electricity markets support the economic intuition that market pricing would stabilize and lower energy prices.
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Stephen J. Rassenti is a professor in the College of Arts and Science at George Mason University.
Vernon L. Smith is a member of Independent Institute’s Board of Advisors and Professor of Economics at Chapman University.
Bart J. Wilson is an associate professor of economics at George Mason University.
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| Summer 2023 | Adam Smith, Sociality, and Classical Liberalism | |
| Summer 2020 | Classical Economics: Lost and Found | |
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