| Title |
Analysis on Market Power in Power Transaction with Transmission Constraints |
| Keywords |
Market Power ; Nash Equilibrium ; Mixed Strategy ; Cournot ; Bertrand ; Supply Curve Competition ; Lemke Algorithm ; Transmission Constraints |
| Abstract |
As the electricity industry undergoes a process of fundamental restructuring, horizontal market power appears as a potential obstacle to a fully competitive wholesale electricity market. Market power is the ability profitably to maintain prices above competitive levels by restricting output below competitive levels. In models for imperfect competition under the consideration of the transmission constraints, the Nash equilibrium has the form of a mixed strategy. In this paper, the models for analyzing imperfect competition are compared using the solution of pure and mixed equilibria. The relation between market power and the capacity of a transmission line is investigated by imperfect competition analysis methods: Cournot, Bertrand, and Supply Curve model. |