D. Aussel (université de Perpignan)

Joint work with Pascale BENDOTTI (EDF R&D) and Miroslav PISTEK (Czech Academy of Sciences) We model the competition of producers in deregulated electricity pay-as-bid market as multi-leader-follower game with an Independent System Operator (ISO) playing a central role. We propose an analytical solution to a problem of one producer, i.e., we construct the best response of a producer for all the possible market configurations (demand, bid curves of the other producers). In some cases the best response does not exist and a limiting best response, i.e., sequence of bid functions yielding the positive supremum of profit, is determined instead.