The concept of a supply function equilibrium (SFE) has been widely used to model generators' bidding behavior and market power issues in wholesale electricity markets. Observers of electricity markets have noted how generation capacity constraints may contribute to market power of generation...

Capacity investments in electricity markets is one of the main issues in the restructuring process to ensure competition and enhance system security of networks. We study competition between hydro and thermal electricity generators under demand uncertainty. Producers compete in quantities and...

We study competition between hydro and thermal electricity generators under demand uncertainty. Producers compete in quantities and each is constrained: the thermal generator by capacity and the hydro generator by water availability. We analyze a two-period game emphasizing the incentives for...