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: | Meca Ana, Aparicio Juan, Ferrando Juan Carlos, Sancho Julia |
Keywords: | game theory, bidding |
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.