This paper characterizes equilibrium in an auction market constrained by limited capacities of links in a transportation network. The formulation is adapted to a wholesale spot market for electricity managed by the operator of the transmission system. This paper derives conditions that characterize equilibrium in an auction market of the kind conducted by system operators in the electricity ind...

A goal of this paper is to compare results for discriminatory auctions to results for uniform-price auctions when suppliers have capacity constraints. We have a pretty good understanding of what equilibrium results look like for the uniform-price auctions. But an unresolved problem is what happens when a discriminative auction is run and suppliers have capacity constraints. We formulate a suppl...

We consider a supply function equilibrium (SFE) model of interaction in an electricity market. We assume a linear demand function and consider a competitive fringe and several strategic players all having capacity limits and affine marginal costs. The choice of SFE over Cournot equilibrium and the choice of affine marginal costs is reviewed in the context of the existing literature. We assume t...

In most real options models for evaluating power plants, it is assumed that the price fluctuates stochastically such as a geometric Brownian motion. In actual electricity market, the prices are determined by supply and demand, and the supply and demand balance may cause the price spike. Especially, the supply characteristics, which depend on the type and number of power plants in electricity ma...

In a real-time electric power auction, the bids of producers consist of committed supply as a function of price. The bids are submitted under uncertainty, before the demand by the Independent System Operator has been realized. In the Supply Function Equilibrium (SFE), every producer chooses the supply function maximizing his expected profit given his residual demand. I consider a uniform-price ...

The paper deals with the Supply Function Equilibrium (SFE) as a model of competition in electricity markets. It introduces theoretical advancement through relaxing traditional assumptions of continuity of supply functions and provides a foundation for efficient computational algorithms. Two special examples are considered. One demonstrates that continuous equilibrium could be impossible while a...

in the market for factors of production usually the equilibrium will be stablished on the based of the equality between the value of marginal products of output and their relative price level. on the other hand the value of marginal product of output is a function of observed rate productivity of output and the market capacity of factors of production. thus the fluctuation in the rate of produc...

The paper established a new sealed bargaining mechanism based on the electronic business negotiation model and considering the opaqueness of information on demand and supply. Using the supply function and demand function to analyze the behavior rule during the course of the price change, in the paper we established and proved a series of intersecting chord theorems about concave supply function...

Using previously published data from flume studies, we test a new approach for quantifying the effects of sediment supply (i.e., bed material supply) on surface grain size of equilibrium gravel channels. Textural response to sediment supply is evaluated relative to a theoretical prediction of competent median grain size (D950). We find that surface median grain size (D50) varies inversely with ...