Market Efficiency Improvements
The improvements to market efficiency emerge as the prices in the DA and RT markets tend to converge. This makes pricing less volatile and this decrease, albeit small, is the benefit. Prices will not converge completely as there will still be stochastic differences that were not foreseen between DA and RT, but the narrowing of the price spread leads to greater predictability.
Read more about this topic: Virtual Bidding
Famous quotes containing the words market, efficiency and/or improvements:
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—John Michael Hayes (b. 1919)
““Never hug and kiss your children! Mother love may make your children’s infancy unhappy and prevent them from pursuing a career or getting married!” That’s total hogwash, of course. But it shows on extreme example of what state-of-the-art “scientific” parenting was supposed to be in early twentieth-century America. After all, that was the heyday of efficiency experts, time-and-motion studies, and the like.”
—Lawrence Kutner (20th century)
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—Henry David Thoreau (1817–1862)