Iterative competitive bidding mechanism in generation market

An iterative competitive bidding mechanism in generation market is proposed. With sufficient information from this mechanism, power producers can optimize bidding strategies according to costs. Market operator is licensed to negotiate, which brings out an efficient market by coordinating bidding. Simulation result shows, in a perfect competitive market, all producers can utilize their units efficiently; clearing price maintains a reasonable level; market arrives at Nash equilibrium; the whole system operates economically. In addition, iterative competitive bidding is also an efficient model to analyze the market performance. Collusion is figured out, which indicates the necessity of market regulation.