Estimation of a Sensitivity-Based Metric for Detecting Market Power
Publication: Journal of Energy Engineering
Volume 136, Issue 2
Abstract
The abuse of market power is a potentially serious problem for market designers. Few indices, if any, exist to measure the potential for market power in real time. In this regard, Murillo-Sanchez et al. derived an expression for a dispatch-to-price sensitivity matrix, . The expression requires information about network topology and parameters, as well as the rules used to operate the market. While computing the matrix is conceptually easy for those with all the market and system information, such as an independent system operator, the method is probably impractical for market participants due to the inaccessibility of much of the information. In this paper, a method for estimating the matrix by using publically available data are suggested, indicating that any market participant who does the computation will know when conditions permit them to lower or raise prices through decreased/increased bids and/or offers.
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Information & Authors
Information
Published In
Journal of Energy Engineering
Volume 136 • Issue 2 • June 2010
Pages: 32 - 41
Copyright
© 2010 ASCE.
History
Received: Dec 29, 2008
Accepted: Jul 3, 2009
Published online: Jul 13, 2009
Published in print: Jun 2010
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