In zonal electricity markets, such as Europe's, system operators relieve congested power lines within bidding zones … explicitly by determining optimal bidding strategies and Nash equilibrium prices. We show that market parties anticipate the …

in most empirical analyses of market power in electricity rests on a flawed application of a standard measure of market …-cost margin). The flaw in those electricity market studies is not that the price-cost margin is theoretically inappropriate, but … fixed costs can lead to prices substantially above average variable costs in peak periods. Real-world "noise" in the form of …