Corporate managers and executive compensation in many industries place significant emphasis on measures of firm size, such as sales revenue or market share. Such objectives have an important – yet thus far unquantified – impact on market performance. With n symmetric firms, equilibrium welfare losses are of order 1/n4, and thus vanish extremely quickly. Welfare losses are less than 5% for many ...

Electricity markets in both developed and developing countries have been considerably reorganized over the previous two decades. The unbundling of generation transmission results restructured electricity market which enhances competition among traders regime open access. Therefore, pricing methods should be skilled translating costs into tariffs to allow participation, leads profitable effectiv...

Since the 1990s power markets are being restructured worldwide and nowadays electrical power is traded as a commodity. The liberalization and with it the uncertainty in gas, fuel and electrical power prices requires an effective management of production facilities and financial contracts. Thereby derivatives build essential instruments to exchange volume as well as price risks. The challenge fo...

The purpose of this paper is to analyze the real–time trading of electricity. We address a model for an auction–like trading which captures key features of the real–world electricity markets. Our main result establishes that, under certain conditions, the expected total payment to the electricity producers is independent on particular auction type. This result is analogous to the revenue equiva...

Transmission planning in a restructured electricity market becomes increasingly complicated. To bridge the gap between economic and engineering considerations, this survey paper suggests a framework to clarify the interactions among various economic and engineering issues by reviewing recent theoretical and practical progress in transmission investment and transmission planning methodology. Thu...

This paper addresses the problems of power supply reliability in a market environment. The specific features of economic interrelations between the power supply organization and consumers in terms of reliability assurance are examined and the principles of providing power supply reliability are formulated. The economic mechanisms of coordinating the interests of power supply organization and co...

This paper proposes an index for nodal market power detection in power market under locational marginal pricing (LMP). This index is an ex-ante technique to detect the market power. More precisely, this criterion detects the potential of exercising market power regardless of detecting the actual market power. Also it is obvious that pricing and market clearing method affect the potential of exe...