Economics at your fingertips  

Strategic Behaviour, Resource Valuation and Competition in Electricity Markets

Miguel Espinosa Farfan () and Alvaro Riascos ()

Documentos CEDE from Universidad de los Andes – Facultad de Economía – CEDE

Abstract: By means of a suitable Bayesian game we study spot electricity markets from a structural point of view. We address the problem of individual and aggregate eficciency and we show how to value water from market observables. We compare the former to engineering methods and apply our methodology to Colombian spot electricity market. Our results show that big gas and small hydro plants overbid, resources are undervalued by engineering costs and aggregate costs would have been considerably smaller if agents had played optimally. Revealed costs show a substantial gain in eficciency in the Vickrey auction compared to the actual uniform auction.

Keywords: Multi-unit auctions; Oligopoly; electricity markets (search for similar items in EconPapers)
JEL-codes: D43 D44 L94 (search for similar items in EconPapers)
Pages: 28
Date: 2010-03-07
New Economics Papers: this item is included in nep-cse, nep-ene and nep-ind
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Documentos CEDE from Universidad de los Andes – Facultad de Economía – CEDE
Bibliographic data for series maintained by Universidad De Los Andes-Cede ().

Page updated 2022-06-24
Handle: RePEc:col:000089:006856