Working Paper Series
Supply Function Equilibria in Networks with Transport Constraints
() and Andrew Philpott
Abstract: Transport constraints limit competition and arbitrageurs
possibilities of exploiting price differences between commodities in
neighbouring markets. We analyze a transport-constrained network with local
demand shocks, where spatially distributed oligopoly producers compete with
supply functions, as in wholesale electricity markets. Uniqueness and
existence results are proven, and we are able to explicitly solve for
symmetric supply-function equilibria in some special cases.
Keywords: Spatial competition; Multi-unit auction; Supply-function equilibrium; Transmission network; Wholesale electricity markets; (follow links to similar papers)
JEL-Codes: C72; D43; D44; L91; (follow links to similar papers)
72 pages, December 18, 2012, Revised August 10, 2015
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom