Bohn, Roger E.; Caramanis, Michael C.; Schweppe, Fred C. - In: RAND Journal of Economics 15 (1984) 3, pp. 360-376
An electrical system is modelled with a transmission network, customers, central generators, and independent generators. The system is subject to stochastic failures and stochastic demand parameters. Optimal spot prices are derived for the system. They vary stochastically with space and time,...