Richter, Jan and Viehmann, Johannes (2014). The value of information in explicit cross-border capacity auction regimes in electricity markets. Energy Policy, 70. S. 74 - 85. OXFORD: ELSEVIER SCI LTD. ISSN 1873-6777
Full text not available from this repository.Abstract
We study two electricity markets connected by a fixed amount of cross-border capacity. The total amount of capacity is known to all electricity traders and allocated via an auction. The capacity allocated to each bidder in the auction remains private information. We assume that traders are faced with a demand function reflecting the relationship between electricity transmitted between the markets and the spot price difference. Therefore, traders act like Bayesian-Cournot oligopolists in exercising their transmission rights when presented with incomplete information about the competitors' capacities. Our analysis breaks down the welfare effect into three different components: Cournot behavior, capacity constraints, and incomplete information. We find that social welfare increases with the level of information with which traders are endowed. (C) 2014 Elsevier Ltd. All rights reserved.
Item Type: | Journal Article | ||||||||||||
Creators: |
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URN: | urn:nbn:de:hbz:38-435518 | ||||||||||||
DOI: | 10.1016/j.enpol.2014.03.023 | ||||||||||||
Journal or Publication Title: | Energy Policy | ||||||||||||
Volume: | 70 | ||||||||||||
Page Range: | S. 74 - 85 | ||||||||||||
Date: | 2014 | ||||||||||||
Publisher: | ELSEVIER SCI LTD | ||||||||||||
Place of Publication: | OXFORD | ||||||||||||
ISSN: | 1873-6777 | ||||||||||||
Language: | English | ||||||||||||
Faculty: | Unspecified | ||||||||||||
Divisions: | Unspecified | ||||||||||||
Subjects: | no entry | ||||||||||||
Uncontrolled Keywords: |
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URI: | http://kups.ub.uni-koeln.de/id/eprint/43551 |
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