Spatial oligopolistic equilibria with arbitrage, shared resources, and price function conjectures. (Q703214)

The spatial oligopolistic competition model considered in the paper is made of four major components, each describing the behavior of one of the essential players in the market: the producers, the independent transmission system operator, the input resource allocator and the arbitrager. The models represents a first step towards representing strategic interaction in both power and input markets while explicity considering transmission on network constraints. With the two nonlinear complementary problems as the basic formulations for the models, the existence and uniqueness of a solution to the models hinge on the properties of the matrix and function described market clearing conditions. It is shown, that under some conditions there is an equivalence of endogenous and exogenous arbitrage solutions. A numerical example is provided for illustration the model and the effect of the resource constraints and expectations concerning resource prices on the solution.