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[en] Transmission losses account for a significant proportion of total generation in electric power systems. Participants in competitive electricity markets aim to maximize profits, and losses between different participants can vary. This paper suggested that transmission losses should be fairly allocated in order to prevent participants from subsidizing the losses of other participants. This paper presented a detailed simulation of 5 loss allocation methods, notably (1) pro rata, (2), marginal allocation, (3) unsubsidized marginal allocation, (4) proportional sharing, and (5) Z-Bus allocation. Mathematical models for each of the methods were presented, and a case study of a 3-bus system was used to evaluate and compare the performance of the different methods. 9 refs., 7 figs.