The Supply Function Equilibrium and Its Policy Implications for Wholesale Electricity Auctions

Arbeitspapier

The supply function equilibrium provides a game-theoretic model of strategic bidding in oligopolistic wholesale electricity auctions. This paper presents an intuitive account of current understanding and shows how welfare losses depend on the number of firms in the market and their asymmetry. Previous results and general recommendations for divisible-good/multi-unit auctions provides guidance on the design of the auction format; setting the reservation price; the rationing rule; and restrictions on the offer curves in wholesale electricity auctions.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IFN Working Paper ; No. 812

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Existence and Stability Conditions of Equilibrium ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Auctions ; Electric Utilities
• Thema: Wholesale Electricity Markets ; Supply Function Equilibria ; Competition Policy ; Elektrizitätswirtschaft ; Regulierung ; Wettbewerbspolitik ; Oligopol ; Auktion ; Spieltheorie ; Allgemeines Gleichgewicht

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Holmberg, Pär ; Newbery, David
• Ereignis: Veröffentlichung
• (wer): Research Institute of Industrial Economics (IFN)
• (wo): Stockholm
• (wann): 2009

Weitere Informationen

• Handle: http://hdl.handle.net/10419/81375
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ