Using game theory of asymmetric information to analyze generation companies' strategies in constrained transmission

The electric power market is restructuring in many countries recently. The deregulated power market presents many opportunities for market power. In this paper, the authors investigate the Cournot noncooperative game model to determine the optimal strategy of each generation company. They analyze how to find the Nash-Cournot equilibrium in constrained transmission when information is complete or asymmetric. A simple network is also used to test this approach.