Bid forwarding as a way to connect sequential markets: opportunities and barriers

Abstract

Bid forwarding’ es una forma de conectar dos o más mercados que comercian con productos compatibles, especialmente entre mercados locales y mercados mayoristas. En este artículo, definimos los conceptos relacionados con ‘bid forwarding’ y examinamos el potencial para su implementación en dos casos reales.

We examine the market design conditions that enable the bid forwarding process. Using the identified conditions, we analyze the possibility of bid forwarding in two real cases. We discuss the main policy implications and good market design practices that can encourage the adoption of bid forwarding in upcoming markets.