Price Spikes in Electricity Markets: A Strategic Perspective
This paper aims to analyze the issue of price spikes in electricity markets through the lens of noncooperative game theory. The case we consider is Australia’s long established National Electricity Market (NEM). Specifically, we adapt von der Fehr and Harbord’s multi-unit auction model to settings that more closely reflect the structure of the NEM, showing that price spikes can be related to a specifiable threshold in demand.
|Date of creation:||Dec 2010|
|Date of revision:|
|Contact details of provider:|| Postal: +61 7 3365 6570|
Phone: +61 7 3365 6570
Fax: +61 7 3365 7299
Web page: http://www.uq.edu.au/eemg
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- T M Christensen & A S Hurn & K A Lindsay, 2008.
"It never rains but it pours: Modelling the persistence of spikes in electricity prices,"
NCER Working Paper Series
25, National Centre for Econometric Research.
- Timothy Christensen & Stan Hurn & Kenneth Lindsay, 2009. "It Never Rains but it Pours: Modeling the Persistence of Spikes in Electricity Prices," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 25-48.
- Von der Fehr, N.H.M. & Harbord, D., 1992.
"Spot Market Competition in the UK Electricity Industry,"
09/1992, Oslo University, Department of Economics.
- von der Fehr, Nils-Henrik Morch & Harbord, David, 1993. "Spot Market Competition in the UK Electricity Industry," Economic Journal, Royal Economic Society, vol. 103(418), pages 531-46, May.
- Dechenaux, Emmanuel & Kovenock, Dan, 2007.
"Tacit collusion and capacity withholding in repeated uniform price auctions,"
36764, University Library of Munich, Germany.
- Emmanuel Dechenaux & Dan Kovenock, 2007. "Tacit collusion and capacity withholding in repeated uniform price auctions," RAND Journal of Economics, RAND Corporation, vol. 38(4), pages 1044-1069, December.
- Dechenaux, Emmanuel & Kovenock, Dan, 2005. "Tacit Collusion and Capacity Withholding in Repeated Uniform Price Auctions," Working Paper Series 636, Research Institute of Industrial Economics.
- Dechenaux, Emmanuel & Kovenock, Dan, 2005. "Tacit Collusion and Capacity Withholding in Repeated Uniform Price Auctions," Purdue University Economics Working Papers 1174, Purdue University, Department of Economics.
- Emmanuel Dechenaux & Dan Kovenock, 2005. "Tacit Collusion and Capacity Withholding in Repeated Uniform Price Auctions," UFAE and IAE Working Papers 645.05, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Holmberg, Pär, 2004.
"Unique Supply Function Equilibrium with Capacity Constraints,"
Working Paper Series
2004:20, Uppsala University, Department of Economics.
- Holmberg, Par, 2008. "Unique supply function equilibrium with capacity constraints," Energy Economics, Elsevier, vol. 30(1), pages 148-172, January.
- Ettore Bompard & Yuchao Ma & Elena Ragazzi, 2005.
"Micro-economic Analysis of the Physical Constrained Markets: Game Theory Application to Competitive Electricity Markets,"
- E. Bompard & Y. C. Ma & E. Ragazzi, 2006. "Micro-economic analysis of the physical constrained markets: game theory application to competitive electricity markets," The European Physical Journal B - Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 50(1), pages 153-160, 03.
- de Frutos, Maria-Angeles & Fabra, Natalia, 2008. "On the Impact of Forward Contract Obligations in Multi-Unit Auctions," CEPR Discussion Papers 6756, C.E.P.R. Discussion Papers.
- Ali Hortaçsu & Steven L. Puller, 2008. "Understanding strategic bidding in multi-unit auctions: a case study of the Texas electricity spot market," RAND Journal of Economics, RAND Corporation, vol. 39(1), pages 86-114.
- John Foster & Melvin J. Hinich & Phillip Wild, 2008.
"Randomly Modulated Periodic Signals in Australias National Electricity Market,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 3), pages 105-130.
- John Foster & Melvin Hinich & Phillip Wild, 2008. "Randomly Modulated Periodic Signals in Australias National Electricity Market," Energy Economics and Management Group Working Papers 2-2008, School of Economics, University of Queensland, Australia.
- Green, Richard & Newbery, David M G, 1991.
"Competition in the British Electricity Spot Market,"
CEPR Discussion Papers
557, C.E.P.R. Discussion Papers.
- Green, Richard J & Newbery, David M, 1992. "Competition in the British Electricity Spot Market," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 929-53, October.
- Brennan, Donna & Melanie, Jane, 1998. "Market power in the Australian power market," Energy Economics, Elsevier, vol. 20(2), pages 121-133, April.
- Klemperer, Paul D & Meyer, Margaret A, 1989. "Supply Function Equilibria in Oligopoly under Uncertainty," Econometrica, Econometric Society, vol. 57(6), pages 1243-77, November.
- Phillip Wild & Melvin J. Hinich & John Foster, 2008.
"Are Daily and Weekly Load and Spot Price Dynamics in Australia’s National Electricity Market Governed by Episodic Nonlinearity?,"
Discussion Papers Series
368, School of Economics, University of Queensland, Australia.
- Wild, Phillip & Hinich, Melvin J. & Foster, John, 2010. "Are daily and weekly load and spot price dynamics in Australia's National Electricity Market governed by episodic nonlinearity?," Energy Economics, Elsevier, vol. 32(5), pages 1082-1091, September.
- Andrew Sweeting, 2004. "Market Power in the England and Wales Wholesale Electricity," Working Papers 0413, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Crawford, Gregory S. & Crespo, Joseph & Tauchen, Helen, 2007. "Bidding asymmetries in multi-unit auctions: Implications of bid function equilibria in the British spot market for electricity," International Journal of Industrial Organization, Elsevier, vol. 25(6), pages 1233-1268, December.
When requesting a correction, please mention this item's handle: RePEc:qld:uqeemg:05. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SOE IT)
If references are entirely missing, you can add them using this form.