An auction framework to integrate dynamic transmission expansion planning and pay-as-bid wind connection auctions

Bidding Behavior in Pay-to-Bid Auctions: An Experimental Study∗

This paper experimentally studies the pay-to-bid auction format and compares average revenues in the discrete time simultaneous decision model to average revenues in the continuous time setting experienced in pay-to-bid auctions on the internet. For both of the group sizes studied, 3 and 5, there is no difference in the average revenues between the two environments. However, there is significan...

Supply Function Equilibria of Pay-as-Bid Auctions

Dynamic Robust Transmission Expansion Planning

Recent breakthroughs in Transmission Network Expansion Planning (TNEP) have demonstrated that the use of robust optimization, as opposed to stochastic programming methods, renders the expansion planning problem computationally tractable for real systems. State-of-the-art robust methods treat this problem as stationary throughout the study period, with all the required investments on expansion o...

The Role of Risk Preferences in Pay-to-Bid Auctions

We analyze a new auction format in which bidders pay a fee each time they increase the auction price. Bidding fees are the primary source of revenue for the seller, but produce the same expected revenue as standard auctions (assuming risk-neutral bidders). If risk-loving preferences are incorporated in the model, expected revenue increases. Our model predicts a particular distribution of ending...

Optimal Supply Bidding with Risk Management in an Electricity Pay-as-Bid Auction

It is very important for the participants in a competitive electricity market, which is concerned to various uncertainties, to develop an optimal bidding to achieve maximum profit, especially in a discriminatory pricing (Pay-as-Bid) auction. In this research, the market clearing price (MCP) of each hour assumed to be known as a probability density function (pdf). In this paper, the bidding prob...