Modeling the strategic trading of electricity assets

Fernando Oliveira (), Derek W. Bunn and London Business School
Additional contact information
Derek W. Bunn: London Business School

No 235, Computing in Economics and Finance 2006 from Society for Computational Economics

Abstract: We analyze how strategic asset trading can be used to gain competitive advantage. In the case of electricity markets, companies seek to improve the value of their generating portfolios by acquiring, or selling, power plants. Accordingly, we derive the basic determinants of plant value, explaining how a particular productive asset may have different values for different firms. From this, we develop an evolutionary model to understand how market structure interacts with strategic asset trading to increase the competitive advantage of firms, and furthermore, how this depends upon the actual price-setting microstructure in the wholesale market itself

Keywords: Competitive advantage; computational learning; auctions; asset trading; simulation; electricity markets (search for similar items in EconPapers)
JEL-codes: C72 C73 L14 L94 (search for similar items in EconPapers)
Date: 2006-07-04
New Economics Papers: this item is included in nep-cmp, nep-com, nep-ene, nep-fmk and nep-mst
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://repec.org/sce2006/up.8909.1140800087.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:sce:scecfa:235

Access Statistics for this paper

More papers in Computing in Economics and Finance 2006 from Society for Computational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().