In the last decade the electric energy market as changed is structure in several countries, mainly in the most developed, ones where the regulated activity of electrical companies where a monopoly or an oligopoly of all sectors from generation to the distribution. Changes brought new structures and new markets. The first market is between the generation plants and the wholesalers. The second ma...

In paying open attention to the features of demand as an endogenous market element, thus downplaying the decisive role of supply technology, Austrian theory constitutes a deviant from economics’ mainstream. Still it is obvious that customer impact is not a key concern for a market process view that sees entrepreneurial efforts as mostly originating with the seller. To remedy this shortcoming ti...

When electricity becomes deregulated the price of electricity is not determined by a regulatory authority but by market demand and supply conditions. Electricity cannot be stored and needs to be produced at the same rate at which it is produced. Thus, if any of the cheaper generating units fails a more expensive unit needs to be brought into operation in order to meet the demand. This increased...

In this paper we report an experiment that examines a primary concern of policy makers: how a structural feature of electric power networks can contribute to the exercise of market power by well-positioned players in deregulated markets. One such feature is the distribution of ownership of a given set of generating assets. For example, two large firms could be allocated baseload and intermediat...

The European electricity market has been deregulated recently. This means that energy companies must optimize power generation considering the rapidly fluctuating price on the spot market. Optimisation has also become more difficult. Novel production technologies, such as gas turbines (GT), combined heat and power generation (CHP), and combined steam and gas cycles (CSG) require non-convex mode...

This case explores the use of market segmentation and the practical difficulties often encountered in such work. The solutions to these difficulties are highlighted. The case is based on the deregulated and highly competitive UK market for energy, namely gas and electricity supply. With little product differentiation possible, gas and electricity tend to be price-driven purchases, which increas...

It is very important to forecast electricity price in a deregulated electricity market for choosing the bidding strategy, and it is the most important signal for other players. It engulfs information for both customers and producers in order to maximize their profit. Thus, choosing the best method of price forecasting is a crucial task to have the most accurate forecast. In this paper the price...

We examine a competitive market in which producers and consumers are scattered around the economy, linked by a network with finite capacity, along which the good has to be delivered for consumption. A most prominent example would be the deregulated electric power market. Because of the complexity of transaction across the network, the equilibrium allocation is generally complicated. However, we...

In the deregulated electricity market bidding contest is the major operation. Prices obtained from the result of bidding strategy is essential, since all market participants do not be familiar with the accurate assessment of future prices in their decision-making process. Locational Marginal Pricing (LMP) obtains from the Optimal Power Flow problem gives the economic value of electrical energy ...

This article analyzes demand side particularities of telecommunications markets and their consequences for the market structure. I assume that telecommunications markets are characterized by two distinguishing features: (i) the efficacy of network externalities and (ii) the presence of two-part tariffs as a simple instrument of price discrimination. Then, the usual tendency to conformity establ...