Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/183598
Authors: 
Richstein, Jörn C.
Lorenz, Casimir
Neuhoff, Karsten
Year of Publication: 
2018
Series/Report no.: 
DIW Discussion Papers 1765
Abstract: 
Short-term electricity markets are key to an efficient production by generation units. We develop a two-period model to assess different bidding formats to determine for each bidding format the optimal bidding strategy of competitive generators facing price-uncertainty. We compare the results for simple bidding, block bidding and multi-part bidding and find that even under optimal simple and block bidding generators face the risk of ex-post suboptimal solutions, whereas in multi-part bidding these do not occur. This points to efficiency gains of multi-part bidding in the presence of uncertainty in electricity markets.
Subjects: 
market design
electricity markets
bidding formats
auctions
JEL: 
D44
D47
Q48
L94
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size
734.65 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.