December 2004
11
R. Rajaraman. “Optimal Bidding Strategies in Electricity Markets”
Example 2: Assumptions
•
The auction is a single-price auction, i.e.,
all winners are paid the clearing price
•
MW bids are restricted to be non-
decreasing functions of price in $/MWh
•
Period 1 auction is held; after it clears,
period 2 bids are accepted and cleared