On Supply-Function Equilibria in Radial Transmission Networks

Reprint No. 2018:71

Author(s): Pär Holmberg and Andrew PhilpottYear: 2018 Title: European Journal of Operational Research Volume (No.): 271 (3) Pages: 985–1000
Online article (restrictions may apply)

On Supply-Function Equilibria in Radial Transmission Networks Pär Holmberg and Andrew Philpott

Transmission constraints limit competition and arbitrageurs’ possibilities of exploiting price differences between commodities in neighbouring markets. We analyze radial transmission-constrained networks with local demand shocks, where spatially distributed oligopoly producers compete with supply functions, as in wholesale electricity markets. We prove existence and uniqueness of supply-function equilibrium in two-node networks, and we are able to explicitly solve for symmetric supply-function equilibria in two-node and star networks.

Holmberg, Pär and Andrew Philpott (2018), "On Supply-Function Equilibria in Radial Transmission Networks". European Journal of Operational Research 271(3), 985–1000.

Pär Holmberg


Ph: +46 8 665 4559
Mob: +46 72 511 6866

Elgar Companion to

Social Capital and Health

Martin Ljunge okt 2018.jpg

Martin Ljunge, IFN, is the author of a chapter, "Trust promotes health: addressing reverse causality by studying children of immigrants", in a new book edited by Sherman Folland and Eric Nauenberg. The cutting edge of research is presented, covering the ever-expanding social capital field.

About the book


Seminars organized by IFN


To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se