Analyzing the Equilibrium of Oligopoly Electricity Markets with Contracts

摘要

Many countries have deregulated their electricity markets.But the important physical characteristics of electricity supply industry decide that the electricity market is an oligopoly market.In order to optimally manage the trade risks,financial tools such as forward contracts and options contracts is introduced into electricity markets.Based on game theory of economics,this paper derives the equilibrium solution of oligopoly electricity markets and show that the existence of forward contracts and options contracts increases the efficiency of markets in a Cournot setting,but options contracts have more flexibility and attraction to market players.