Article ID: | iaor200930032 |
Country: | United States |
Volume: | 31 |
Issue: | 3 |
Start Page Number: | 621 |
End Page Number: | 636 |
Publication Date: | Aug 2006 |
Journal: | Mathematics of Operations Research |
Authors: | Pritchard Geoffrey, Zakeri Golbon, Philpott Andrew |
Keywords: | electricity |
The market distribution function is a probabilistic device that can be used to model the randomness in dispatch and clearing price that generators in electricity–pool markets must take account of when submitting offers. We discuss techniques for estimating the market distribution function, and ways of measuring the quality of these estimators, using both classical statistical approaches and an expected–foregone–revenue approach.