Some Inequalities related to the analysis of electricity auctions
Most balaning markets of electric power are organized as uniform-price auctions. In 2001, the balancing market of England and Wales switched to a pay-as-bid auction with the intention of reducing wholesale electricity prices. Numerical simultations of an electricity auction model have indicated that this should lead to decreased average prices. In this article we prove two inequalities which give an analytic proof of this claim in the same model.
|Date of creation:||26 Aug 2005|
|Date of revision:|
|Publication status:||Published in Applied Mathematics Letters, 2006, pages 814-819.|
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