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A Study on the Selection of a Bidding Parameter at the Bidding Function Model in an Electricity Market  

Cho Cheol-Hee (단국대 전기공학과)
Lee Kwang-Ho (단국대 전기전자컴퓨터공학부)
Publication Information
The Transactions of the Korean Institute of Electrical Engineers A / v.53, no.11, 2004 , pp. 630-635 More about this Journal
Abstract
Generation companies(Genco) submit the supply functions as a bidding function to a bid market in a competitive electricity market. The profits of Gencos vary in accordance with the bid functions, so the selection of a bidding function plays a key role in increasing their profits. In order to get a profitable bidding function which is usually linear, it is required to modify adequately the intersection and the slope of a linear supply function. This paper presents an analysis of the selection of the supply function from the viewpoint of Nash equilibrium(NE). Four types of bidding function parameters are used for analizing the electricity market. The competition of selecting bidding parameters is modeled as two level games in this research. One is a subgame where a certain type of parameters is given and the players compete to select values of the underlying parameters. The other is an overall game where the players compete to select a profitable type among the four types of parameters. The NEs in both games are computed by an using analytic method and a payoff matrix method. It is verified in case studies for the NE of overall game to satisfy the equilibrium condition.
Keywords
Electricity Market; Nash Equilibrium; Bidding Parameters; Game Theory; Payoff Matrix;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
연도 인용수 순위
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