Overview
- Includes supplementary material: sn.pub/extras
Part of the book series: Lecture Notes in Economics and Mathematical Systems (LNE, volume 617)
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Table of contents (5 chapters)
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Front Matter
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Back Matter
Keywords
About this book
Electricity is an essential commodity traded at power exchanges. Its price is very volatile within a day and over the year. This raises questions about the efficiency of the trading rules. The author develops a non-cooperative auction model analyzing the bidding behavior of producers at power exchanges. Producers are limited by the production capacity of their power plants. Production costs are affiliated. This allows for independence or positive correlation. The author analyzes and compares a uniform-price, a discriminatory, and a generalized second-price auction. Optimal bids, cost efficiency, profits, and consumer prices are examined. A simple probability density function of affiliated production costs is given and used for examples. Numerical results are presented. The results of the analysis can help improving the bidding strategies of producers, selecting the best auction type at power exchanges or detecting price manipulations.
Editors and Affiliations
Bibliographic Information
Book Title: Auctions in the Electricity Market
Book Subtitle: Bidding when Production Capacity Is Constrained
Editors: Stefan Schöne
Series Title: Lecture Notes in Economics and Mathematical Systems
DOI: https://doi.org/10.1007/978-3-540-85365-7
Publisher: Springer Berlin, Heidelberg
eBook Packages: Business and Economics, Economics and Finance (R0)
Copyright Information: Springer-Verlag Berlin Heidelberg 2009
Softcover ISBN: 978-3-540-85364-0Published: 19 December 2008
eBook ISBN: 978-3-540-85365-7Published: 06 January 2009
Series ISSN: 0075-8442
Series E-ISSN: 2196-9957
Edition Number: 1
Number of Pages: XVI, 218
Number of Illustrations: 40 b/w illustrations
Topics: Environmental Economics, Energy Policy, Economics and Management, Microeconomics, Macroeconomics/Monetary Economics//Financial Economics, Energy Systems, Economic Theory/Quantitative Economics/Mathematical Methods