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The European Union regulations regarding wholesale energy market integrity require the transparency in the information regarding electricity market. It is required to apply the market monitoring tools that are commonly used in the European Union, such as RSI index and other market evaluation tools. The use of market monitoring tools became even more important after the North-Western Europe power markets...
The present paper proposes an empirical approach for including the effect of strategic competition in market simulation, avoiding the use of time consuming game theoretical models. The methodology is based on a linear estimation of the Lerner Index, that is a common measurement for price mark up, depending on the Residual Supply Index values of the strategic suppliers. The empirical model is estimated...
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