On financial transmission rights and market power
Authors: Pritchard, Geoffrey; Philpott, Andy
Journal: Decision Support Systems (2005)
DOI: 10.1016/j.dss.2004.09.002
This paper studies financial transmission rights in electricity pool markets with nodal pricing, when these rights are to be allocated by an auction mechanism. A market distribution function approach is used to investigate the effects on electricity offering behaviour when participants hold financial transmission rights, and the implications of this for the auction design are discussed.