Electricity markets are becoming more integrated around the world. However, the knowledge of the effects of different auction formats on suppliers' strategies in the presence of transmission constraints and transmission costs is still very limited. In this paper, I analyze the performance of...

Capacity constraints on transmissions of electricity are raising an increasing policy concern as electricity markets are integrated around the world. But our understanding of the workings of such markets is still limited. The purpose of this paper is to highlight the impact of transmission...

A successful transformation to a carbon neutral energy system requires the correct investments in transmission and 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...

Zonal pricing electricity markets operate sequentially. First, the suppliers compete in a spot market. Second, to alleviate the congestion in the transmission line, in a redispatch market, the suppliers in the importing node are called into operation to increase their production, and the...

The Hawk-Dove game is one of the salient models used to study a wide range of questions in the industrial organization literature. Hawk-Dove games have multiplicity of equilibria, and it is not possible to disentangle with equilibrium will emerge in the game complicating the subsequent policy...

In Hawk-Dove games with mulitiplicity of equilibria, we study which equilibria are selected using various equilibrium selection methods. Using a uniform price auction as an illustrative example, we apply the tracing procedure method of Harsanyi and Selten (1988), the robustness to strategic...

Electricity markets are becoming more integrated around the world. However, the knowledge of the effects of different auction formats on suppliers' strategies in the presence of transmission constraints and transmission costs is still very limited. In this paper, I analyze the performance of...