this paper represents a complete survey on generation companies’ (gencos’) optimal bidding strategy problem in restructured power markets. in this regard after an introduction to competitive electricity markets, concept of optimal bidding strategy is presented. considering large amount of works accomplished in this area a novel classification is implemented in order to categorize the existing d...

Indicative bidding is a practice commonly used in sales of complex and very expensive assets. Theoretical analysis shows that efficient entry is not guaranteed under indicative bidding, since there is no equilibrium in which more qualified bidders are more likely to be selected for the final sale. Furthermore, there exist alternative bid procedures that, in theory at least, guarantee 100% effic...

The popularity of online auctioning has grown meteorically since the late 90s. This attraction is due to their convenience, low cost and ability to reach large (even worldwide) audiences. However, despite the advantages there are many problems inherent in auctioning online. One such problem is shill bidding where spurious bids are introduced into an auction to drive up the final price for the s...

Human cheating has been a barrier to establishing trust among e-commerce users, throughout the last two decades. In particular, in online auctions, since all the transactions occur among anonymous users, trust is difficult to establish and maintain. Shill bidding happens when bidders bid exclusively to inflate (in forward auctions) or deflate (in reverse auctions) prices in online auctions. At ...

Shill bidding is the act of using bids in an online auction to drive up the final price for the seller, thereby defrauding legitimate bidders. While ‘shilling’ is recognized as a problem and shill bidding is strictly forbidden in online auctions, presently there is little to no established means of defense against shills. This paper presents a software bidding agent that follows a shill bidding...

A single object is for sale to N asymmetric buyers in the independent private values setting by means of an English auction. We consider implications of seller’s active participation in the bidding process, or shill bidding. The main result is that there exists an equilibrium of the English auction with shill bidding that is outcome equivalent to the optimal mechanism of Myerson (1981). Thus, a...

This paper represents a complete survey on Generation Companies’ (GenCos’) optimal bidding strategy problem in restructured power markets. In this regard after an introduction to competitive electricity markets, concept of optimal bidding strategy is presented. Considering large amount of works accomplished in this area a novel classification is implemented in order to categorize the existing d...

Strategic bidding in joint energy and spinning reserve markets is a challenging task from the viewpoint of generation companies (GenCos). In this paper, the interaction between energy and spinning reserve markets is modeled considering a joint probability density function for the prices of these markets. Considering pay-as-bid pricing mechanism, the bidding problem is formulated and solved as a...

T seller’s threshold price in name-your-own-price auctions varies over time. However, consumers must bid without knowing when these variations occur because the threshold price is unobservable to them. This paper uses an analytical model and laboratory auctions to explore how the frequency of changes in the threshold price impacts consumer bidding behavior in name-your-own-price auctions. In pa...