| Units: | - |
| Default Value: | 0.01 |
| Validation Rule: | >0 |
| Description: | Minimum margin between competing offer prices or between offer prices and the price cap. |
Competition Epsilon is used to maintain a gap between offer prices when computing mark-ups. In the Bertrand Competition (Shadow Pricing) algorithm it prevents unintentional out-of-merit-order dispatch. For example, if a Generator is shadow bidding up from $15.00 to a competitor's price of $30.00, and Epsilon is 0.01, the mark-up is $14.99 resulting in a Offer Price of $29.99. Likewise for the last Generator in the merit-order Epsilon is the gap between the Offer Price and the Region VoLL. Note that Offer Price is capped by Region Price Cap.