Abstract:
We consider electricity pool markets in radial electricity transmission networks in which the lines have
no transmission losses, but have transmission capacities. At each node there is a strategic generator
submitting generation quantities to the pool. Prices are determined by a linear competitive fringe at
each node. We derive necessary and sufficient conditions on the line capacities that ensure that the
unconstrained one-shot Cournot equilibrium remains an equilibrium in the constrained network. These
conditions are characterized by a convex polyhedral set.