IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v121y2003i1p123-14810.1023-a1023307319633.html
   My bibliography  Save this article

An Oligopolistic Investment Model of the Finnish Electricity Market

Author

Listed:
  • Pierre-Olivier Pineau
  • Pauli Murto

Abstract

The investment problem faced by producers in deregulated electricity markets contains high uncertainties about the future. It can also be seen as a game, as only a small number of large players act in the market. A dynamic stochastic oligopoly model to describe the production and investment in such a situation is developed and applied to the Finnish electricity market. The demand growth rate is modeled as a stochastic variable. The strategies of the firms consist of investments and production levels for base and peak load periods. The firms have nuclear, hydro and thermal capacities, but are only allowed to invest in new thermal capacity. Using a so-called sample-path adapted open-loop information structure, the model contributes to the understanding of the dynamics of production, investment and market power in a medium time horizon. The solution method uses recent developments in variational inequality and mixed complementarity problem formulations. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • Pierre-Olivier Pineau & Pauli Murto, 2003. "An Oligopolistic Investment Model of the Finnish Electricity Market," Annals of Operations Research, Springer, vol. 121(1), pages 123-148, July.
    • Handle: RePEc:spr:annopr:v:121:y:2003:i:1:p:123-148:10.1023/a:1023307319633
    DOI: 10.1023/A:1023307319633
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1023307319633
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1023307319633?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:121:y:2003:i:1:p:123-148:10.1023/a:1023307319633. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.