Each supplier will bid strategically for choosing the bidding coefficients to counter the competitors bidding strategy.
Therefore, each supplier will bid strategically for choosing the bidding coefficients to counter the competitors bidding strategy.
It is assumed that there is a simple linear relationship between the bid price and bid volume, i.e., C i = α i P i + β i, where α i and β i are bidding coefficients which can be estimated based on historical data [21].
The dichotomous CV technique estimates the mean and median WTPs based on the coefficients related the WTP responses against a constant and the bid (BID).
The only difference is that Alta is also a price bidder of the whole bidding process at this time with bidding strategic coefficient constrained in interval [1, 5] such that the wind unit's bid can be up to 35 $/MWh, which is in a comparable range of the bids of the other strategic units.
Therefore, each GENCO will submit generator bids to the ISO according to the following linear supply function for Generator i. f_{i} = b_{i} cdot frac{{partial C_{i} }}{{partial G_{i} }} = b_{i} cdot c_{i} (3)where b i is the unknown bidding strategic coefficient variable of conventional GENCO i (it equals to 1 for non-strategic bidders), f i is the bidding price of conventional GENCO i ($/MWh).
The two bidding strategy coefficients for Park City and Sundance are constrained to be in interval [1, 3] and [1, 1.5], respectively.
In addition, for the parameters associated with GA applied to the cases below, we set the total biological generation to 100, the population size to 50, crossover rate to 0.5, mutation rate to 0.01, and eight bits for bidding strategy coefficients (b i and b j ).
Bid's negative coefficient implies that a higher proportion of no is observed as the bid increases which is consistent with the exploratory analysis in Table 1.
The coefficients of the bid value in the two models are statistically significant and negative as expected, revealing that an increase in bid amount could reduce the 'yes' response and the existence of the WTP for conservation program.
