  Considering the sequential clearing of energy and reserves in Europe,
enabling inter-area reserve exchange requires optimally allocating inter-area
transmission capacities between these two markets. To achieve this, we provide
a market-based allocation framework and derive payments with desirable
properties. The proposed min-max least core selecting payments achieve
individual rationality, budget balance, and approximate incentive compatibility
and coalitional stability. The results extend the works on private discrete
items to a network of continuous public choices.
