An experimental structure is demonstrated that represents end-use customers in electricity markets who can substitute part of their usage between day and night. Each customer's demand relationship is represented by a two-step value function for each period, disaggregated from observed market demand relationships, that varies between day and night and during… (More)
Personal use of this material is permitted. However, permission to reprint/republish this material for advertising or promotional purposes or for creating new collective works for resale or redistribution to servers or lists, or to reuse any copyrighted component of this work in other works, must be obtained from the IEEE. Abstract The objective of this… (More)
(PSERC) is a multi-university Center conducting research on challenges facing the electric power industry and educating the next generation of power engineers. More information about PSERC can be found at the Center's website: Notice Concerning Copyright Material PSERC members are given permission to copy without fee all or part of this publication for… (More)
and the army of past and present students who worked on parts of this project over the years for their support and for helpful comments during the course of this work. All conclusions, recommendations, and remaining errors are the sole responsibility of the authors.
Allaz and Vila (1993) argued that forward markets mitigate market power and enhance efficiency. This paper analyzes the implications of forward markets when oligopolistic firms endogenously choose capacity levels. The paper shows that the forward market that occurs after the investment decision is committed may discourage total investment and result in a… (More)