A single-period auction game model for modeling oligopolistic competition in pool-based electricity markets

A single-period auction game model in a pool-based electricity market is introduced in the paper. The authors study the Nash equilibrium in pure strategy sense. First equilibrium characterization under tight capacity constraints is provided. Then it is demonstrated that the auction game does not possess a pure strategy Nash equilibrium under a wide range of market conditions. To enhance the prediction power of the auction game model, a weaker form of equilibrium, quasi-equilibrium is introduced. The paper provides a characterization of quasi-equilibrium under weak capacity constraints.