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Approximation of supply curves

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  • Andres M. Alonso
  • Zehang Li

Abstract

In this note, we illustrate the computation of the approximation of the supply curves using a one-step basis. We derive the expression for the L2 approximation and propose a procedure for the selection of nodes of the approximation. We illustrate the use of this approach with three large sets of bid curves from European electricity markets.

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  • Andres M. Alonso & Zehang Li, 2023. "Approximation of supply curves," Papers 2311.10738, arXiv.org.
    • Handle: RePEc:arx:papers:2311.10738
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    References listed on IDEAS

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    1. Ziel, Florian & Steinert, Rick, 2016. "Electricity price forecasting using sale and purchase curves: The X-Model," Energy Economics, Elsevier, vol. 59(C), pages 435-454.
    2. Menezes, Flavio M. & Quiggin, John, 2012. "More competitors or more competition? Market concentration and the intensity of competition," Economics Letters, Elsevier, vol. 117(3), pages 712-714.
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