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Flow-based Capacity Allocation in the CEE Region : Sensitivity Analysis , Multiple Optima , Real Income

The paper introduces the mechanism of the Flow-based Capacity Allocation (FBA) method of the Central-Eastern Europe (CEE) Region. It reveals the properties of the underlying linear programming problem and discusses their practical consequences. A non-standard sensitivity analysis method of the market spread auction is developed. Finally, the objective and the real overall income of the auction are compared by the aid of a global optimization problem. Several numerical examples and results of practical test problems are presented.