Operations Research Seminar: Carlos Ruiz Mora

Retail Competition with Switching Consumers in Electricity Markets

Carlos RUIZ, Universidad Carlos III de Madrid

In this work we consider a game theoretical model where asymmetric electricity retailers compete in prices to increase their profits by accounting for the utility function of consumers. Consumer preferences for retailers are uncertain and distributed within a Hotelling line. We analytically characterize the equilibrium of a retailer duopoly, establishing its existence and uniqueness conditions. The duopoly model is extended to a multiple retailer case for which we perform an empirical analysis via numerical simulations.

(with F. J. Nogales and F. J. Prieto)