Interconnecting distinct electricity markets by adding a new transmission line affects the outcomes in these markets in a complicated way when there is uncertainty in demand or participant behaviour. We use market distribution functions to examine the effects of interconnection using a single...

In this paper we analyse the equilibrium structure for a particular type of electricity market. We consider a market with two generators offering electricity into a pool. Generators are centrally dispatched, with cheapest offers used first. The pool price is determined as the highest-priced...