Holmberg, Pär; Newbery, David; Ralph, Daniel - In: Journal of Economic Theory 148 (2013) 4, pp. 1509-1551
In most electricity markets generators must submit step-function offers to a uniform price auction. These markets are often modelled as simpler pure-strategy Supply Function Equilibria (SFE) with continuous supply functions. Critics argue that the discreteness and discontinuity of the required...