Decision Support Systems - Special issue on restructuring the electric power business—a new paradigm for reducing regulation
Market power and price volatility in restructured markets for electricity
Decision Support Systems
On the supply function equilibrium and its applications in electricity markets
Decision Support Systems - Challenges of restructuring the power industry
Retail pricing decisions and product category competitive structure
Decision Support Systems
Cloud Computing System Management Under Flat Rate Pricing
Journal of Network and Systems Management
An auction design for local reserve energy markets
Decision Support Systems
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This paper illustrates how a supplier profit may be affected by the market pricing mechanism under imperfect competition. A parameterized Supply Function Equilibrium (SFE) model involving manipulation of the sole intercept is used to represent the strategic behavior of each supplier. Through utilizing a bilevel optimization technique and a Mathematical Program with Equilibrium Constraints (MPECs) approach, market equilibria are calculated and compared under pay-as-bid pricing (PABP) and marginal pricing (MP) mechanisms. For an unconstrained case, analytically it is demonstrated that the optimal bidding strategy and the maximum profit of each supplier, as well as the market clearing price are the same under PABP and MP. The effects of the transmission limits and the supplier capacity constraints are discussed through numerical results.