We consider a general auction model with infinitely divisible commodity and price functions and give a new existence result in the case of the unbounded feasible set. We show that equilibrium states in the Cournot oligopoly can be attained via this auction mechanism. This property holds also...

Unique-lowest sealed-bid auctions are auctions in which participation is endogenous and the winning bid is the lowest bid among all unique bids. Such auctions admit very many Nash equilibria (NEs) in pure and mixed strategies. The two-bidders' auction is similar to the Hawk-Dove game, which...

As redispatch costs and their associated distributional impacts continue to rise, the discussion on reconfiguring bidding zones in European power markets persists. However, determining an appropriate bidding zone configuration is a non-trivial task, as it must prove beneficial under varying...

This study examines the static market and welfare effects of splitting the German bidding zone, comparing a two-zone and a three-zone configuration for a 2030 scenario. Using a state-of-the-art grid and market model with explicit representation of frictions in flow-based market coupling and...

The profitable exploitation of asset portfolios in the European electricity markets has become more challenging in recent years. This is particularly true for combined heat and power (CHP) generation units that are often facing must-run conditions due to heat demands that need to be satisfied....

The main purpose of this survey paper is to consider the attempts that have been made to apply economic theory and empirical methods to the analysis of electricity markets, and to evaluate them in light of theoretical considerations and empirical evidence. We describe the key features of the...

We describe a Vickrey-Clarke-Groves auction of supply and demand bidding in the face of market power and nonconcave benefits in which bidders are motivated to bid truthfully, and evaluate its use for power and gas pipeline auctions. The auction efficiently allocates resources if firms maximize...

Continuous trading is currently becoming the standard for intraday electricity markets. In this paper, we propose frequent auctions as a viable alternative. We argue that batching orders in auctions potentially leads to lower liquidity cost, more reliable, less noisy price signals, and allows...