We can also comment about the resulting trigger prices for
the 14 service areas. First, the cooperative response
prices which can be derived from the computed cooperative
response quantities are always greater than the trigger
prices. The trigger prices themselves are related to the
y intercept that was computed for each
service area using the Perl model. For service area A, we
see the y intercept is 4.72991 from Table 3. For service
area B, a y intercept of 6.32969 was computed, and for
service area C, a y intercept of 5.41145 was computed.
In Table 4,
we see that the trigger price for service area C is greater than the
trigger price for service area A, and that the trigger
price for service area B is the largest of the three. The
relationship holds in every case, that the trigger price is
higher in areas that would support greater demand for access.
In Table 5 we list the expected market prices that were computed
using the quantities in Table 4 and the Equation 6
from Section 4.