Deregulating electricity markets around the world in the search for efficiency has introduced competition into the electricity marketing and generation business. Studying interactions amongst the participants has thus acquired great importance for regulators and market participants for analysing market evolution and suitably defining their bidding strategies. Different tools have thereofre been used for modelling competitive electricity markets during the last few years. This paper presents an analytical review of the bibliography found regarding this subject; it also presents the most used tools along with their advantages and disadvantages. Such analysis was done by comparing the models used, identifying the main market characteristics such as market structure, bid structure and kind of bidding. This analysis concluded that the kind of tool to be used mainly depends on a particular study’s goal and scope.