The impact of withholding flexibility: an application to ramp bidding in electricity markets

Ekaterina Moiseeva; M.R.  Hesamzadeh; Sonja Wogrin

The impact of withholding flexibility: an application to ramp bidding in electricity markets

Ekaterina Moiseeva, M.R. Hesamzadeh, Sonja Wogrin

Research output: Contribution to conference › Abstract › peer-review

Abstract

We compare a one-level and a bilevel equilibrium game in which firms' flexibility is either: decided at the same time as their production decisions; or sequentially. We analize the impact that different market structures have on the equilibrium outcomes. Our findings are applied to the ramp bidding game in electricity markets. It is observed that electricity producers may strategically declare a lower ramp rate if they expect such decision to maximize their profit in the production stage.

Original language	English
Publication status	Published - 2015
Externally published	Yes
Event	2015 INFORMS Annual Meeting - Philadelphia, United States Duration: 1 Nov 2015 → 4 Nov 2015

Conference

Conference	2015 INFORMS Annual Meeting
Country/Territory	United States
City	Philadelphia
Period	1/11/15 → 4/11/15

Cite this

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title = "The impact of withholding flexibility: an application to ramp bidding in electricity markets",

abstract = "We compare a one-level and a bilevel equilibrium game in which firms' flexibility is either: decided at the same time as their production decisions; or sequentially. We analize the impact that different market structures have on the equilibrium outcomes. Our findings are applied to the ramp bidding game in electricity markets. It is observed that electricity producers may strategically declare a lower ramp rate if they expect such decision to maximize their profit in the production stage.",

author = "Ekaterina Moiseeva and M.R. Hesamzadeh and Sonja Wogrin",

year = "2015",

language = "English",

note = "2015 INFORMS Annual Meeting ; Conference date: 01-11-2015 Through 04-11-2015",

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TY - CONF

T1 - The impact of withholding flexibility: an application to ramp bidding in electricity markets

AU - Moiseeva, Ekaterina

AU - Hesamzadeh, M.R.

AU - Wogrin, Sonja

PY - 2015

Y1 - 2015

N2 - We compare a one-level and a bilevel equilibrium game in which firms' flexibility is either: decided at the same time as their production decisions; or sequentially. We analize the impact that different market structures have on the equilibrium outcomes. Our findings are applied to the ramp bidding game in electricity markets. It is observed that electricity producers may strategically declare a lower ramp rate if they expect such decision to maximize their profit in the production stage.

AB - We compare a one-level and a bilevel equilibrium game in which firms' flexibility is either: decided at the same time as their production decisions; or sequentially. We analize the impact that different market structures have on the equilibrium outcomes. Our findings are applied to the ramp bidding game in electricity markets. It is observed that electricity producers may strategically declare a lower ramp rate if they expect such decision to maximize their profit in the production stage.

M3 - Abstract

T2 - 2015 INFORMS Annual Meeting

Y2 - 1 November 2015 through 4 November 2015

ER -