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An Oligopolistic Electricity Market Model with Interdependent Segments

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  • Pierre-Olivier Pineau
  • Georges Zaccour

Abstract

In this paper, we model a two-period electricity market with interdependent demand, where oligopolistic generators make investments in peak- and baseload capacities. Different prices are obtained in the two periods, and residential consumers can react to prices across demand periods. We characterize the Cournot equilibrium obtained as a function of price and cross-price effects and present a numerical illustration based on the Ontario (Canada) electricity market.

Suggested Citation

  • Pierre-Olivier Pineau & Georges Zaccour, 2007. "An Oligopolistic Electricity Market Model with Interdependent Segments," The Energy Journal, , vol. 28(3), pages 165-186, July.
    • Handle: RePEc:sae:enejou:v:28:y:2007:i:3:p:165-186
    DOI: 10.5547/ISSN0195-6574-EJ-Vol28-No3-9
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    References listed on IDEAS

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    1. Filippini, Massimo, 1995. "Electricity demand by time of use An application of the household AIDS model," Energy Economics, Elsevier, vol. 17(3), pages 197-204, July.
    2. Mountain, Dean C. & Lawson, Evelyn L., 1995. "Some initial evidence of Canadian responsiveness to time-of-use electricity rates: Detailed daily and monthly analysis," Resource and Energy Economics, Elsevier, vol. 17(2), pages 189-212, August.
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