We compare a one-level and a bilevel equilibrium game in which firms' flexibility is either: decided at the same time as their production decisions; or sequentially. We analize the impact that different market structures have on the equilibrium outcomes. Our findings are applied to the ramp bidding game in electricity markets. It is observed that electricity producers may strategically declare a lower ramp rate if they expect such decision to maximize their profit in the production stage.
|Published - 2015
|2015 INFORMS Annual Meeting - Philadelphia, United States
Duration: 1 Nov 2015 → 4 Nov 2015
|2015 INFORMS Annual Meeting
|1/11/15 → 4/11/15