Market Power in Power Markets: Game Theory vs. Agent-Based Approach

Saguan, Marcelo; Keseric, Nenad; Dessante, Philippe; Glachant, Jean-Michael

doi:10.1109/tdcla.2006.311439

Cited by 13 publications

(11 citation statements)

References 7 publications

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“…ABMs are now ubiquitous when modelling the electricity sector [84][85][86] because of their higher explanatory power in general [87,88] and better ability to explore the effects of increasing amounts of renewable energy in the mix [89][90][91]. Multiagent systems can also be used to actually run a decentralized power grid [92,93].…”

Section: Specific Problems With Energy Modelsmentioning

confidence: 99%

“…The price reductions will also continue since we have many, many doublings to go and renewable energy uses much less raw material than fossil energy. For example, wind needs between 2 grams (airborne wind energy [85]) and 10 grams of material per kWh [86,87] while a coal fired power plant burns about 300 grams per kWh [88,89]. And electric vehicles running on this renewable energy use only 400 kg of battery (falling to 100-200 kg) to replace over 15 tons of crude oil over the lifetime of the car [91,92].…”

Section: Disruptive Technological Innovationmentioning

confidence: 99%

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Creating Agent-Based Energy Transition Management Models That Can Uncover Profitable Pathways to Climate Change Mitigation

Hoekstra

Steinbuch

Verbong³

2017

Complexity

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The energy domain is still dominated by equilibrium models that underestimate both the dangers and opportunities related to climate change. In reality, climate and energy systems contain tipping points, feedback loops, and exponential developments. This paper describes how to create realistic energy transition management models: quantitative models that can discover profitable pathways from fossil fuels to renewable energy. We review the literature regarding agent-based economics, disruptive innovation, and transition management and determine the following requirements. Actors must be detailed, heterogeneous, interacting, learning, and strategizing. Technology should be represented as a detailed and heterogeneous portfolio that can develop in a bottom-up manner, using endogenous feedback loops. Assumptions about discount rates and the social cost of carbon should be configurable. The model should contain interactions between the global, national, local, and individual level. A review of modelling techniques shows that equilibrium models are unsuitable and that system dynamics and discrete event simulation are too limited. The agent-based approach is found to be uniquely suited for the complex adaptive sociotechnical systems that must be modelled. But the choice for agent-based models does not mean a rejection of other approaches because they can be accommodated within the agent-based framework. We conclude with practical guidelines.

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Section: Specific Problems With Energy Modelsmentioning

confidence: 99%

Section: Disruptive Technological Innovationmentioning

confidence: 99%

Creating Agent-Based Energy Transition Management Models That Can Uncover Profitable Pathways to Climate Change Mitigation

Hoekstra

Steinbuch

Verbong³

2017

Complexity

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“…However, results of such simulations are considerably sensitive to these a priori assumptions, so a trade-off between tractability and realism is required. Recent developments [3] show that ABMS modelling gives results comparable to these obtained by game theory methods, if similar assumptions are used. Along with other favourable properties of ABMS, this leads to conclusion that ABMS are well suited for electricity market modelling.…”

Section: A Multi-agent Modeling and Simulationmentioning

confidence: 89%

Agent-based modelling application possibilities for Croatian electricity market simulation

Fekete

Nikolovski

Puzak³

et al. 2008

2008 5th International Conference on the European Electricity Market

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Croatia is today in the first phase of restructuring and opening its electricity market. At this moment, electricity market is open to eligible customers only. Eligible customers are able to choose their supplier and currently these are all nonhouseholds. Starting from July 1st, 2008 all customers, including households, will become eligible and the market will hence be fully open. Therefore, a suitable method for Croatian market simulation is needed. This paper presents possibilities of using an agent-based model to simulate the Croatian electricity market. Agent-based models represent each market participant as an independent software agent. Each agent has its own strategy and decision-making process. Agents are able to learn and adapt to their environment. EMCAS (Electricity Market Complex Adaptive System) is a computer simulation program for agentbased simulation. This paper presents an EMCAS case representing mutual influences of market participants in the emerging Croatian market. Simulations and future developments are presented.

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“…Parunak et al [36] compare ABS and systems dynamics models based on ordinary differential equations for supply chains. Alternatively, agents are used to model the dynamical influence of certain decision rules e.g., for auctions in the electricity markets [39,41] or promotional strategies that support the launch of a product [8]. All of these models are self-referential and at the level of highly abstracted descriptions and are not intended to be quantitative.…”

Section: Agent-based Simulationmentioning

confidence: 99%

An Agent Model for the High-End Gamers Market

Adriaansen

Armbruster

Kempf

et al. 2013

Advs. Complex Syst.

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Understanding the driving forces in the markets of their products is a basic necessity for any business. Quantitative models are either aggregated over large market segments or restricted to utility models of an individual's buying decision. While the aggregate models acknowledge that customer interactions are important they do not model them and hence have no way to adjust their model to changing business environments. This paper bridges the gap between individual decisions and the overall market behavior using agent based simulations to model the sales of computer chips in the high-end gamers market. The simulation environment is dynamic and models the succession of 19 products introduced over a 40 month time horizon which includes the recession of 2008-2010. Simulated sales are compared to actual sales data and are used to adjust the parametrization of the agents and their environment. We found that only two agent parameters are sufficient to obtain a very reasonable fit between simulations and data: The amount of money 1350028-1 Advs. Complex Syst. 2013.16. Downloaded from www.worldscientific.com by AUSTRALIAN NATIONAL UNIVERSITY on 03/16/15. For personal use only. T. Adriaansen et al.available for the gaming hobby and a parameter related to the gaming success of the high-end gamers.

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Market Power in Power Markets: Game Theory vs. Agent-Based Approach

Cited by 13 publications

References 7 publications

Creating Agent-Based Energy Transition Management Models That Can Uncover Profitable Pathways to Climate Change Mitigation

Creating Agent-Based Energy Transition Management Models That Can Uncover Profitable Pathways to Climate Change Mitigation

Agent-based modelling application possibilities for Croatian electricity market simulation

An Agent Model for the High-End Gamers Market

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