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:
“I respect not his labors, his farm where everything has its price, who would carry the landscape, who would carry his God, to market, if he could get anything for him; who goes to market for his god as it is; on whose farm nothing grows free, whose fields bear no crops, whose meadows no flowers, whose trees no fruit, but dollars; who loves not the beauty of his fruits, whose fruits are not ripe for him till they are turned to dollars. Give me the poverty that enjoys true wealth.”
—Henry David Thoreau (1817–1862)
“I’ll take fifty percent efficiency to get one hundred percent loyalty.”
—Samuel Goldwyn (1882–1974)
“... these great improvements of modern times are blessings or curses on us, just in the same ratio as the mental, moral, and religious rule over the animal; or the animal propensities of our nature predominate over the intellectual and moral. The spider elaborates poison from the same flower, in which the bee finds materials out of which she manufactures honey.”
—Harriot K. Hunt (1805–1875)