A Comparative Study of Iran’s Electricity Market Auction Mechanism and System Marginal Price Auction Mechanism
The present article discusses the impacts of selecting between different common auctions in electricity markets (system marginal price auction and pay as bid auction) on production efficiency, total efficiency and average expected price in an asymmetric information situation, where each player’s inf...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2014-06-01
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| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Subjects: | |
| Online Access: | https://joer.atu.ac.ir/article_415_a24e79c4987ed0fcbe139be7374e0a42.pdf |
| _version_ | 1797375687399571456 |
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| author | Jamshid Pajuyan Teymour Mohammadi Javid Bahrami Faramarz Atbaei |
| author_facet | Jamshid Pajuyan Teymour Mohammadi Javid Bahrami Faramarz Atbaei |
| author_sort | Jamshid Pajuyan |
| collection | DOAJ |
| description | The present article discusses the impacts of selecting between different common auctions in electricity markets (system marginal price auction and pay as bid auction) on production efficiency, total efficiency and average expected price in an asymmetric information situation, where each player’s information about the marginal cost of the competitor is incomplete. A simple model is designed to conduct the comparative study of alternative auction mechanisms. The model is based on two profit maximizing players, with full information about their own marginal cost and incomplete information about their competitor. Assumptions which have been used to construct the model are based on Iran’s electricity market structure. The outcome indicates that although players bid functions in alternative auction mechanism differ from each other, the production efficiency, total efficiency and the average expected price are equivalent. |
| first_indexed | 2024-03-08T19:28:02Z |
| format | Article |
| id | doaj.art-ecf36e44a59542c8b2c428ce27aac4de |
| institution | Directory Open Access Journal |
| issn | 1735-210X 2476-6453 |
| language | fas |
| last_indexed | 2024-03-08T19:28:02Z |
| publishDate | 2014-06-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| spelling | doaj.art-ecf36e44a59542c8b2c428ce27aac4de2023-12-26T07:58:33ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2476-64532014-06-011453135415A Comparative Study of Iran’s Electricity Market Auction Mechanism and System Marginal Price Auction MechanismJamshid Pajuyan0Teymour Mohammadi1Javid Bahrami2Faramarz Atbaei3استاد دانشگاه علامه طباطبائیاستادیار دانشگاه علامه طباطبائیاستادیار دانشگاه علامه طباطبائیدانشجوی دکترای دانشگاه علامه طباطبائیThe present article discusses the impacts of selecting between different common auctions in electricity markets (system marginal price auction and pay as bid auction) on production efficiency, total efficiency and average expected price in an asymmetric information situation, where each player’s information about the marginal cost of the competitor is incomplete. A simple model is designed to conduct the comparative study of alternative auction mechanisms. The model is based on two profit maximizing players, with full information about their own marginal cost and incomplete information about their competitor. Assumptions which have been used to construct the model are based on Iran’s electricity market structure. The outcome indicates that although players bid functions in alternative auction mechanism differ from each other, the production efficiency, total efficiency and the average expected price are equivalent.https://joer.atu.ac.ir/article_415_a24e79c4987ed0fcbe139be7374e0a42.pdfsystem marginal price auctionpay as bid auctionmechanism designelectricity market |
| spellingShingle | Jamshid Pajuyan Teymour Mohammadi Javid Bahrami Faramarz Atbaei A Comparative Study of Iran’s Electricity Market Auction Mechanism and System Marginal Price Auction Mechanism Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī system marginal price auction pay as bid auction mechanism design electricity market |
| title | A Comparative Study of Iran’s Electricity Market Auction Mechanism and System Marginal Price Auction Mechanism |
| title_full | A Comparative Study of Iran’s Electricity Market Auction Mechanism and System Marginal Price Auction Mechanism |
| title_fullStr | A Comparative Study of Iran’s Electricity Market Auction Mechanism and System Marginal Price Auction Mechanism |
| title_full_unstemmed | A Comparative Study of Iran’s Electricity Market Auction Mechanism and System Marginal Price Auction Mechanism |
| title_short | A Comparative Study of Iran’s Electricity Market Auction Mechanism and System Marginal Price Auction Mechanism |
| title_sort | comparative study of iran s electricity market auction mechanism and system marginal price auction mechanism |
| topic | system marginal price auction pay as bid auction mechanism design electricity market |
| url | https://joer.atu.ac.ir/article_415_a24e79c4987ed0fcbe139be7374e0a42.pdf |
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