A bargaining model of regulated markets' integration with anapplication to electricity supply market

摘要

An integrated market organized by regulated electric utilities ismodelled. It is assumed that, given a price vector for the exchange ofelectricity between each pair of neighboring utilities, utilitiesindependently maximize their own domestic social welfare subject to thezero profit constraint. An equilibrium price vector for exchanges amongutilities is defined as the one which clears the exchanges for all pairof business partners. A single piecewise linear model is formulated forcomputing market equilibria. The model is used to simulate theelectricity supply market organised by 11 western European countries