Oruc, S., A. Pandharipande, et al. (2010). An electricity market incentive game based on time-of-use tariff. In: Proceedings of the Stony Brook Game Theory Conference, 12-07-2010-16-07-2010. At: New York
We consider incentive pricing for load shifting in electricity markets under a time-of-use (TOU) tariff scheme. The interaction between different market participants - producers, retailers and consumers, is modeled using game theory. Simple analytical models are used to capture the incentives and load shifting. First, we obtain results for optimum incentive-load shift under a single retailer monopoly case. The results are then extended to the duopoly and oligopoly cases. It is shown that competition decreases the effectiveness of incentives from a global welfare perspective. Finally, some policy implications of the analysis are provided.