Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/232520
Authors: 
Richstein, Jörn C.
Lorenz, Casimir
Neuhoff, Karsten
Year of Publication: 
2020
Citation: 
[Journal:] Energy Economics [Year:] 2020 [Volume:] 89 [Issue:] (Article No.) 104784 [Pages:] [ISSN:] 0140-9883
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. We 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
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
Document Version: 
Published Version

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