Summary

onomic expectations of independent, competitive behavior in actual, "workably competitive" markets. The California Parties' economists have used an inappropriate theoretical norm of perfectly competitive markets as a basis for assessing the observed outcomes, and as a basis for estimating the generators' retroactive refund Peter Cramton is Professor of Economics at the University of Maryland and President of Market Design Inc. Over the last 19 years, he has conducted research on auction theory and practice. This research appears in the leading peer-reviewed economics journals (see www.cramton.umd.edu). During the last 10 years, Cramton has applied this research in the design and implementation of auction markets in the U.S. and abroad. He has led the design and implementation of several high-stake auction markets in telecommunications, electricity, and other industries. He has advised numerous governments on market design and has advised dozens of bidders on bidding strategy in high