marginal cost of suppliers. The leading example is the electricity industry, where there is a capacity market clearing before … the spot market. -- capacity market ; procurement auction ; electricity market ; competitive equilibrium …

Capacity constraints on transmissions of electricity are raising an increasing policy concern as electricity markets … this paper is to highlight the impact of transmission capacity constraints and transmission costs on electricity market …

We study two electricity markets connected by a fixed amount of crossborder capacity. The total amount of capacity is … known to all electricity traders and allocated via an auction. The capacity allocated to each bidder in the auction remains … private information. We assume that traders are faced with a demand function reflecting the relationship between electricity …

production capacity. In a zonal pricing electricity market, the one proposed by the European Commission to integrate the European … electricity markets, I analyze the effects that investments in transmission and production capacity have on consumer welfare and …