A market power model with demand flexibility over time for deregulated electricity markets

This paper presents a gaming model with Cournot strategy considering cross-price elasticities over different time periods. The almost ideal demand system is explored which considers consumption with expenditure target. This means that the total consumption within certain time periods cannot be less than a lower bound. However, consumption can be shifted from peak demand time to nonpeak demand time. A small electricity market setting is used in a case study to demonstrate the model.