A market power model with demand flexibility over time for deregulated electricity markets

Author

Morse, B. Adair ; Yu, Z. ; Sparrow, F.T.

Author_Institution

Dept. of Agric. Econ., Purdue Univ., West Lafayette, IN, USA

Volume

4

fYear

2000

fDate

2000

Firstpage

2248

Abstract

This paper presents a gaming model with Cournot strategy considering cross-price elasticities over different time periods. The almost ideal demand system is explored which considers consumption with expenditure target. This means that the total consumption within certain time periods cannot be less than a lower bound. However, consumption can be shifted from peak demand time to nonpeak demand time. A small electricity market setting is used in a case study to demonstrate the model

Keywords

electricity supply industry; game theory; power consumption; power system economics; Cournot strategy; almost ideal demand system; cross-price elasticities; demand flexibility; deregulated electricity markets; expenditure target; gaming model; market power model; nonpeak demand time; oligopoly profit maximisation; peak demand time; power consumption; small electricity market setting; Artificial intelligence; Economic forecasting; Elasticity; Electricity supply industry; Electricity supply industry deregulation; Equations; Microeconomics; Power generation; Power markets; Power system economics;

fLanguage

English

Publisher

ieee

Conference_Titel

Power Engineering Society Summer Meeting, 2000. IEEE

Conference_Location

Seattle, WA

Print_ISBN

0-7803-6420-1

Type

conf

DOI

10.1109/PESS.2000.867341

Filename

867341