Online auctions, in the absence of spatial, temporal and geographic constraints, provide an alternative supply chain channel for the distribution of goods and services. This channel differs from the common posted-price mechanism that is typically used in the retail sector. In consumer-oriented markets, buyers can now experience the thrill of ‘winning’ a product, potentially at a bargain, as opp...

A crucial challenge in future smart energy grids is the largescale coordination of distributed energy demand and generation. The well-known PowerMatcher is a promising approach that integrates demand and supply flexibility in the operation of the electricity system through dynamic pricing and a hierarchical bidding coordination scheme. However, as the PowerMatcher focuses on short-term coordina...

This paper reports on the development of a comprehensive framework for the analysis and formulation of bids in competitive electricity markets. Competing entities submit offers of power and energy to meet the next day's load. We use the England and Wales Power Pool as the basis for the development of a very general competitive power pool (CPP) framework. The framework provides the basis for sol...

Purely financial players without any physical assets can participate in day-ahead electricity markets as virtual bidders. They arbitrage the price difference between (DA) and real-time (RT) to maximize profits. Virtual bidders encounter various monetary risks uncertainties their decision-making due high volatility of difference. Therefore, this paper proposes a max-min two-level optimization mo...

This paper studies negative externalities’e¤ect on bidding strategy and auction outcome. We use a model of one special bidder and two regular bidders, where if the special bidder wins, both regular bidders incur a loss; otherwise, the two losing bidders receive zero payo¤s. Applying the model to an ascending clock auction, regular bidders are shown to bid less aggressively and drop out before r...

Strategic bidding in joint energy and spinning reserve markets is a challenging task from the viewpoint of generation companies (GenCos). In this paper, the interaction between energy and spinning reserve markets is modeled considering a joint probability density function for the prices of these markets. Considering pay-as-bid pricing mechanism, the bidding problem is formulated and solved as a...