Abstract
This study reviews international experience with market based redispatch. It focuses on two manifestations of strategic behavior: abuse of market power and so-called inc-dec gaming. Two central arguments are derived from the review. First, reviewed countries explain strategic behavior by the lack of competition within congestion regions and primarily as a result of market power. Inc-dec gaming, if present, is recognized as a problem only in combination with market power exercise. Second, strategic behavior can be effectively addressed with countermeasures. In result, the potential for strategic behavior within market based redispatch does not seem to justify rejecting its implementation.
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