A marketplace game with neither distribution costs nor distribution-capacity constraints

Recently, problems associated with variations of the static demand economic-dispatch problem for an electrical power grid [10] have been considered by several authors, e.g., [5], [7]. However, demand elasticity for electricity may grow with the onset of enormous amounts of electric vehicle charging, see e.g., [1], [4] and the references therein. We consider a noncooperative game played by the generators based on information from grid (independent system operator (ISO)) which acts to set a single clearing price, rather than location based prices, for all consumers (demand aggregators or individual loads). Unlike [5], the retailer-distributor is not aware of, and does not compensate based on, generators’ marginal cost of production. This clearing price is simply the mean of an unregulated spotprice of supply. We formulate a generic game involving