Implication of different pricing rules on generators´ bidding behaviour

This paper presents an agent-based model to examine the employment of different pricing rules, namely the Uniform pricing rule and Pay-as-bid pricing rule. Using Q-learning in repetitive trading process, generator agents learn the market characteristics and seek to maximize their revenue by exploring bidding strategies. Supply quantity withholding and generators´ collusion phenomenon have been observed in this study under certain market arrangements. The implication of different pricing rules on the total dispatch costs and generators´ profit are discussed in this paper.