•Assume a single energy market
•Assume a single time period
•Assume a single-stair bid
•ExampleGen has
incremental costs of $35/MWh (and no other
costs or constraints) and forecasts with certainty that energy market will clear at $42/MWh
•[Uniform price auction] If every winning generator gets paid the highest
winning bid, then ExampleGen’s optimal bidding strategy is to bid $35/MWh
•[Pay-as-bid auction] If every winning generator gets
paid its own bid, then ExampleGen’s optimal bidding strategy is to bid $42/MWh
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