Bidding Behavior of Small Firms in Sequential Auctions in the Context of the Spanish Electricity Market

We study the bidding behavior of four small firms in the Spanish Electricity System in the sequence of markets (day‐ahead, technical constraints, intra‐day and ancillary services). We concentrate in the two main markets from the point of view of energy and revenue: day‐ahead (uniform‐price auction with complementarities) and technical constraints (discriminatory, pay‐as‐bid auction). We try to explain the bidding behavior as a sequence of auctions based on data from 2015 to 2017 using the model developed in Wolak (2003, 2007) and Reguant (2014)