Barriers to competitive fringe expansion as a seed of market power

Power Transmission Capacity Expansion in a Market Driven Environment with Application to the Italian Electricity Market

We introduce a model intended for the analysis of the upgrade of the national transmission grid which explicitly accounts for responses given by the power generating companies in terms of plant expansion. The problem is modeled as a bilevel program with mixed integer structure in both, upper and lower level. Upper level is defined by the transmission company problem which has to decide on how t...

Equilibrium Values in a Competitive Power Exchange Market

Research on Competitive Multi-facility Location with Market Expansion

It is critical to locate facilities in the retail operations, especially in competitive environment. In most competitive location models available in the literatures, demand is assumed to be fixed or random regardless of market conditions. However, demand is related to the number of facilities, service capacity or the distance from the facility to the customer, which is considered in few litera...

Competitive Market Mechanisms as Social Choice Procedures

Social choice theory concerns itself with the proper choice of a social state from a given feasible set of social states. The main question the theory addresses is how that social choice should depend on the profile of individual preferences. Early work by Arrow and various predecessors, including Condorcet, Borda, Dodgson and Black, was about the construction of a social preference ordering — ...

Optimal Response of an Oligopolistic Generating Company to a Competitive Pool-Based Electric Power Market

The target of an oligopolistic generating company in a pool-based electric power market is to maximize its profits using two related instruments at hand: 1) its ability to modify the market-clearing price and 2) its capability to alter its own production level. Power balance is not an issue for the generating company; the independent system operator ensures power balance considering generator a...