Non-smooth Agent-based Dynamics of Strategic Bidding with Linear Supply Function

In the studies of strategic bidding solutions for multiple players to compete in a centralized electricity market, the existence of multiple/single market equilibria has been verified and analyzed with specific system constraints for the market optimization. In this paper, the dynamics resulting from line capacity constraints on a two-agent strategic bidding is focused on in light of linear supply function model in centralized electricity markets. Global attractors for this non-smooth bidding model in different cases are analyzed in order to help the two generators make bidding regulation.

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