An empirical method of dynamic oligopoly behaviour analysis in electricity market

J.D. Liu, T.T. Lie, K.L. Lo

Research output: Contribution to journalArticle

24 Citations (Scopus)

Abstract

Evidence of market power existing in the electricity markets has been empirically revealed, but the understanding of the market structure and generation companies' (GENCOs') strategic behaviors underlying the market power is far from satisfactory. This paper presents a theory and method for estimating the conjectural variations of GENCOs. Based on these estimates of conjectural variations in an actual electricity market, an empirical methodology is also proposed to analyze the dynamic oligopoly behaviors underlying market power. This is not only useful for system regulators to analyze the market structure but also to recognize and control the market power accordingly. The Australia National Electricity Market is used as the simulation case to test the proposed method.
LanguageEnglish
Pages499-504
Number of pages5
JournalIEEE Transactions on Power Systems
Volume21
Issue number2
DOIs
Publication statusPublished - 2006

Fingerprint

Power markets
Industry

Keywords

  • oligopoly
  • power markets
  • electricity market

Cite this

@article{8d58b60aa63d43f3856aceb7d12c264b,
title = "An empirical method of dynamic oligopoly behaviour analysis in electricity market",
abstract = "Evidence of market power existing in the electricity markets has been empirically revealed, but the understanding of the market structure and generation companies' (GENCOs') strategic behaviors underlying the market power is far from satisfactory. This paper presents a theory and method for estimating the conjectural variations of GENCOs. Based on these estimates of conjectural variations in an actual electricity market, an empirical methodology is also proposed to analyze the dynamic oligopoly behaviors underlying market power. This is not only useful for system regulators to analyze the market structure but also to recognize and control the market power accordingly. The Australia National Electricity Market is used as the simulation case to test the proposed method.",
keywords = "oligopoly, power markets, electricity market",
author = "J.D. Liu and T.T. Lie and K.L. Lo",
year = "2006",
doi = "10.1109/TPWRS.2006.873054",
language = "English",
volume = "21",
pages = "499--504",
journal = "IEEE Transactions on Power Systems",
issn = "0885-8950",
number = "2",

}

An empirical method of dynamic oligopoly behaviour analysis in electricity market. / Liu, J.D.; Lie, T.T.; Lo, K.L.

In: IEEE Transactions on Power Systems, Vol. 21, No. 2, 2006, p. 499-504.

Research output: Contribution to journalArticle

TY - JOUR

T1 - An empirical method of dynamic oligopoly behaviour analysis in electricity market

AU - Liu, J.D.

AU - Lie, T.T.

AU - Lo, K.L.

PY - 2006

Y1 - 2006

N2 - Evidence of market power existing in the electricity markets has been empirically revealed, but the understanding of the market structure and generation companies' (GENCOs') strategic behaviors underlying the market power is far from satisfactory. This paper presents a theory and method for estimating the conjectural variations of GENCOs. Based on these estimates of conjectural variations in an actual electricity market, an empirical methodology is also proposed to analyze the dynamic oligopoly behaviors underlying market power. This is not only useful for system regulators to analyze the market structure but also to recognize and control the market power accordingly. The Australia National Electricity Market is used as the simulation case to test the proposed method.

AB - Evidence of market power existing in the electricity markets has been empirically revealed, but the understanding of the market structure and generation companies' (GENCOs') strategic behaviors underlying the market power is far from satisfactory. This paper presents a theory and method for estimating the conjectural variations of GENCOs. Based on these estimates of conjectural variations in an actual electricity market, an empirical methodology is also proposed to analyze the dynamic oligopoly behaviors underlying market power. This is not only useful for system regulators to analyze the market structure but also to recognize and control the market power accordingly. The Australia National Electricity Market is used as the simulation case to test the proposed method.

KW - oligopoly

KW - power markets

KW - electricity market

UR - http://dx.doi.org/10.1109/TPWRS.2006.873054

U2 - 10.1109/TPWRS.2006.873054

DO - 10.1109/TPWRS.2006.873054

M3 - Article

VL - 21

SP - 499

EP - 504

JO - IEEE Transactions on Power Systems

T2 - IEEE Transactions on Power Systems

JF - IEEE Transactions on Power Systems

SN - 0885-8950

IS - 2

ER -