Strategic bidding in continuous electricity auctions: an application to the Spanish electricity market

Strategic bidding in continuous electricity auctions: an application to the Spanish electricity market

0.00 Avg rating0 Votes
Article ID: iaor2009403
Country: Netherlands
Volume: 158
Issue: 1
Start Page Number: 229
End Page Number: 241
Publication Date: Feb 2008
Journal: Annals of Operations Research
Authors: , , ,
Keywords: game theory, bidding
Abstract:

In this paper we introduce an asymmetric model of continuous electricity auctions with limited production capacity and bounded supply functions. The strategic bidding is studied with this model by means of an electricity market game. We prove that for every electricity market game with continuous cost functions a mixed-strategy Nash equilibrium always exists. In particular, we focus on the behavior of producers in the Spanish electricity market.

Reviews

Required fields are marked *. Your email address will not be published.