Simposio Internacional sobre la Calidad de la Energía Eléctrica - SICEL

Descendant Clock Auction is a dynamic procurement auction implemented at several energy markets. Some authors have approached to model this kind of auction, but their models have not included the bidder adaptation along the auction.

This paper presents an algorithm based on decision theory and microeconomic theory to simulate the bidders behavior along the auction. The bidders model use portfolio concepts and historical information about their preferences in Energy Market. The model was applied to evaluate the Colombia’s Organized Market (MOR). MOR is a Descending Clock Auction to trade long term energy contracts. Specifically, demand curve and round size were varied to evaluate their impact over auction outputs. The main conclusion of this work was that this model is helpful to understand the bidders’ adaptation process in this kind of auction