Baldick, Ross; Grant, Ryan; Kahn, Edward - In: Journal of Regulatory Economics 25 (2004) 2, pp. 143-167
We consider a supply function equilibrium (SFE) model of interaction in an electricity market. We assume a linear demand function and consider a competitive fringe and several strategic players having capacity limits and affine marginal costs. The choice of SFE over Cournot equilibrium and other...