Study of strategic behavior impact in the spot market on capacity expansion using a linearised EPEC

Efraim Centeno, Sonja Wogrin, Julián Barquín

Research output: Contribution to conferenceAbstractpeer-review


Capacity expansion decisions are represented using a bilevel approach (EPEC). In the upper level the competing generation companies maximize their individual profits, while the lower level represents the spot markets using a conjectured price-response approach. This model is linearised and solved to show the solution variation with respect to the level of competence in the spot market and that the market equilibrium can have multiple solutions with investments level that vary significantly.
Original languageEnglish
Publication statusPublished - 2012
Externally publishedYes
EventINFORMS 2012 Annual Meeting - Phoenix, United States
Duration: 14 Oct 201217 Oct 2012


ConferenceINFORMS 2012 Annual Meeting
Country/TerritoryUnited States

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