Matthew O’Keefe

Assistant Professor of Economics, Vanderbilt University

Microeconomist interested in energy, power markets, and the environment.

Email: matthew.okeefe@vanderbilt.edu

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Publications

Unilateral Market Power in Financial Transmission Rights Auctions
The Energy Journal, 46 (3), 103-122 (2025).

Working Papers

Price Adjustment and Competition in US Strategic Petroleum Reserve Drawdowns

Sales from the US Strategic Petroleum Reserve (SPR) are conducted using basis auctions, in which winning bidders' final payments are indexed to spot prices. This mechanism can eliminate potential inefficiencies arising from private information about the evolution of oil prices between auction and delivery, benefiting the seller (the US government). Reduced form evidence suggests that bids in SPR sales are consistent with pure private values despite significant uncertainty and a deep resale market. In a stylized model calibrated to the 2022 SPR drawdown, the use of basis auctions generates tens of millions of dollars in savings with limited private information.

Identification and Estimation of Auction Models with Dual Risk-Averse Bidders
with Tong Li and Jingfeng Lu.

Dual Risk Aversion and Optimal Reserve Prices in First- and Second-Price Auctions
with Tong Li and Jingfeng Lu.

Make, Buy, or Share: The Role of Interfirm Trade in Fracking Wastewater Reuse

Research in Progress

Misallocation of water. The role of storage with Francisco Pareschi

Teaching

Econ 9500: Industrial Organization I Vanderbilt University (PhD)

Econ 3893: Selected Microeconomic Topics (Energy Economics) Vanderbilt University (Undergraduate)