| Article ID: | iaor20061494 |
| Country: | Netherlands |
| Volume: | 40 |
| Issue: | 3/4 |
| Start Page Number: | 507 |
| End Page Number: | 515 |
| Publication Date: | Oct 2005 |
| Journal: | Decision Support Systems |
| Authors: | Pritchard Geoffrey, Philpott Andy |
| Keywords: | electricity |
This paper studies financial transmission rights in electricity pool markets with nodal pricing, when these rights are to be allocated by an auction mechanism. A market distribution function approach is used to investigate the effects on electricity offering behaviour when participants hold financial transmission rights, and the implications of this for the auction design are discussed.