Oligopolistic Equilibrium Analysis for Electricity Markets: A Nonlinear Complementarity Approach

Wang, Xian; Yu-zeng, LI; Zhang, Shaohua

doi:10.1109/tpwrs.2004.831237

Cited by 112 publications

(28 citation statements)

References 15 publications

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“…L is the set of all transmission lines and T l acts as the power flow on the transmission line l. The constraint consists of a power balance equality (2), and transmission power inequalities (3). Each rational strategic generation firm maximizes its profits (revenue minus generating costs) by selecting its own generation parameter accepting as given the strategic parameters of other firms [3]. Formulating firm i's objective into a quadratic program with generation capacity limits, we have…”

Section: Optimization Of Cournot Modelmentioning

confidence: 99%

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Strategy Equilibrium in Stackelberg Model with Transmission Congestion in Electricity Market

Lee¹

2014

Journal of Electrical Engineering and Technology

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-Nash Cournot Equilibrium (NCE) has been widely used in a competitive electricity market to analyze generation firms' strategic production quantities. Congestion on a transmission network may lead to a mixed strategy NCE. Mixed strategy is complicated to understand, difficult to compute, and hard to implement in practical market. However, Stackelberg model based equilibrium does not have any mixed strategy, even under congestion in a transmission line. A guide to understanding mixed strategy equilibrium is given by analyzing a cycling phenomenon in the players' best choices. This paper connects the concept of leader-follower in Stackelberg model with relations between generation firms on both sides of the congested line. From the viewpoint of social welfare, the surplus analysis is presented for comparison between the NCE and the Stackelberg equilibrium (SE).

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Section: Optimization Of Cournot Modelmentioning

confidence: 99%

“…The most extensively used among oligopoly market models has been the Cournot model in Nash Equilibrium (NE) analysis of generation wholesale markets [1][2][3]. In the Cournot model, generation firms choose a strategic quantity depending on the rivals' expected production quantity.…”

Section: Introductionmentioning

confidence: 99%

Strategy Equilibrium in Stackelberg Model with Transmission Congestion in Electricity Market

Lee¹

2014

Journal of Electrical Engineering and Technology

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“…Each rational strategic generation firm maximizes its profits (revenue minus generating costs) by selecting its own generation parameter accepting as given the strategic parameters of other firms [3]. Formulating the firm i's objective into a quadratic program with generation capacity limits, we have…”

Section: B Two-level Optimizationmentioning

confidence: 99%

“…The most extensively used among oligopoly market models has been the Cournot model in Nash Equilibrium (NE) analysis of generation wholesale markets [1][2][3][4]. In this context generation firms determine a strategic quantity based on the rivals' expected productions.…”

Section: Introductionmentioning

confidence: 99%

Solving Mixed Strategy Nash-Cournot Equilibria under Generation and Transmission Constraints in Electricity Market

Lee

2013

Journal of Electrical Engineering and Technology

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-Generation capacities and transmission line constraints in a competitive electricity market make it troublesome to compute Nash Equilibrium (NE) for analyzing participants' strategic generation quantities. The NE can cause a mixed strategy NE rather than a pure strategy NE resulting in a more complicated computation of NE, especially in a multiplayer game. A two-level hierarchical optimization problem is used to model competition among multiple participants. There are difficulties in using a mathematical programming approach to solve a mixed strategy NE. This paper presents heuristics applied to the mathematical programming method for dealing with the constraints on generation capacities and transmission line flows. A new formulation based on the heuristics is provided with a set of linear and nonlinear equations, and an algorithm is suggested for using the heuristics and the newly-formulated equations.

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“…Game theory [5][6] can capture the strategic interactions among producers who are aware that their results depend on other competitors' decisions. Based on the game theory, [10][11][12][13][14][15][16][17][18][19][20][21][22] investigated the strategic interactions among producers in electricity markets.…”

Section: Introductionmentioning

confidence: 99%

Micro-economic analysis of the physical constrained markets: game theory application to competitive electricity markets

Bompard

Ragazzi

2006

Eur. Phys. J. B

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Abstract-Competition has been introduced in the electricity markets with the goal of reducing prices and improving efficiency. The basic idea which stays behind this choice is that, in competitive markets, a greater quantity of the good is exchanged at a lower and a lower price, leading to higher market efficiency.Electricity markets are pretty different from other commodities mainly due to the physical constraints related to the network structure that may impact the market performance. The network structure of the system on which the economic transactions need to be undertaken poses strict physical and operational constraints.Strategic interactions among producers that game the market with the objective of maximizing their producer surplus must be taken into account when modeling competitive electricity markets. The physical constraints, specific of the electricity markets, provide additional opportunity of gaming to the market players. Game theory provides a tool to model such a context. This paper discussed the application of game theory to physical constrained electricity markets with the goal of providing tools for assessing the market performance and pinpointing the critical network constraints that may impact the market efficiency. The basic models of game theory specifically designed to represent the electricity markets will be presented. IEEE30 bus test system of the constrained electricity market will be discussed to show the network impacts on the market performances in presence of strategic bidding behavior of the producers.

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Oligopolistic Equilibrium Analysis for Electricity Markets: A Nonlinear Complementarity Approach

Cited by 112 publications

References 15 publications

Strategy Equilibrium in Stackelberg Model with Transmission Congestion in Electricity Market

Strategy Equilibrium in Stackelberg Model with Transmission Congestion in Electricity Market

Solving Mixed Strategy Nash-Cournot Equilibria under Generation and Transmission Constraints in Electricity Market

Micro-economic analysis of the physical constrained markets: game theory application to competitive electricity markets

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