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Energy Harvesting Technologies and Market Opportunities Read chapter Read first chapter

2020 | OriginalPaper | Chapter

2. Electricity Market Pricing: Uniform Pricing vs. Pay-as-Bid Pricing

Authors : Alireza Akbari-Dibavar, Behnam Mohammadi-Ivatloo, Kazem Zare

Published in: Electricity Markets

Publisher: Springer International Publishing

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Abstract

Selecting proper pricing rule is essential for the efficient operation of power markets. There are two main pricing rules in the existing power markets, namely uniform pricing (UP) and pay-as-bid (PAB) pricing. Among auction theorists, it is an unsolved question whether uniform pricing is superior to pay-as-bid pricing or the opposite. In this chapter, the aim is not to test various market benchmarks to answer the mentioned question; instead, the existing works relating introducing of and comparison between UP and PAB pricing schemes are reviewed, and the answer of the question is prescribed from each literature’s perspective.

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Metadata
Title
Electricity Market Pricing: Uniform Pricing vs. Pay-as-Bid Pricing
Authors
Alireza Akbari-Dibavar
Behnam Mohammadi-Ivatloo
Kazem Zare
Copyright Year
2020
Book
Electricity Markets

Print ISBN: 978-3-030-36978-1

Electronic ISBN: 978-3-030-36979-8

Copyright Year: 2020

DOI
https://doi.org/10.1007/978-3-030-36979-8_2