A Penalty Function Method for the Principal-Agent Problem with an Infinite Number of Incentive-Compatibility Constraints under Moral Hazard

Liu, Jia; Wang, Xianjia

doi:10.1007/s10473-021-0521-6

Cited by 4 publications

(2 citation statements)

References 26 publications

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“…In addition, a voltage regulator has been considered in this system as another option to control voltage deviation. A derivative-based optimization method, namely the Exterior Penalty Function (EPF), is used to solve the optimization problem [16], [17]. The main contributions of this paper can be summarized as follows:…”

Section: B Contributionmentioning

confidence: 99%

Voltage Control of Unbalanced Distribution Systems with Penetration of Renewable Sources: A Gradient-Based Optimization Approach

Ebadi

Senyuz

Aboshady

et al. 2022

2022 57th International Universities Power Engineering Conference (UPEC)

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The penetration of distributed energy resources (DERs), including renewable energy sources (RES), into electric power systems has led to several challenges for the system operators. Despite various economic and environmental benefits offered by RES, the issue of voltage rise due to active power injection from RES is still an open problem. On the other hand, voltage decrease due to high load in distribution systems is another challenge faced by operators. In this study, we investigated the problem of over-voltage and under-voltage in the operation of unbalanced 3-phase distribution systems with penetration of RES. Moreover, We utilize derivative-based Exterior Penalty Function (EPF) optimization to solve the voltage deviation problem. The results of the tests conducted on a modified IEEE 13 Bus Test System have confirmed that the use of the tap changer voltage regulators and reactive power from PVs connected close to inverters can effectively contribute to the voltage control problem.

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Section: B Contributionmentioning

confidence: 99%

Voltage Control of Unbalanced Distribution Systems with Penetration of Renewable Sources: A Gradient-Based Optimization Approach

Ebadi

Senyuz

Aboshady

et al. 2022

2022 57th International Universities Power Engineering Conference (UPEC)

View full text Add to dashboard Cite

show abstract

“…Meanwhile, Wang et al [20] analyzed government incentives and effort levels under conditions of information symmetry and asymmetry based on principal-agent theory; ultimately, they concluded that given information symmetry, the central government can help local governments reach the Pareto optimal effort level through the design of incentive contracts. In addition, experts have presented solutions to the optimal incentive strategy with consideration of the incentive compatibility constraint problem [21][22][23][24]. At present, principal-agent theory has been widely studied and applied, and the literature provides solid theoretical and operational support for our study of the principal-agent relationship between NPOs and enterprises, including our construction of an incentive model for reserve emergency medical supply production capacity.…”

Section: Literature Reviewmentioning

confidence: 99%

Production Capacity Reserve Strategy of Emergency Medical Supplies: Incentive Model for Nonprofit Organizations

Hua

et al. 2022

Sustainability

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In 2020, COVID-19 swept across the globe. To reduce the social harms caused by this public health event, nonprofit organizations (NPOs) cooperated with medical enterprises to produce reserves of emergency medical supplies. In practice, this cooperation was challenged by the different goals of NPOs and medical enterprises and the asymmetry of information between these parties. Enterprises are prone to irregularities or speculative behaviors that can result in insufficient production capacity during public health events, which increase disaster risks. Based on the principal–agent relationship of NPOs and enterprises, this study analyzed a game model between NPOs and enterprises under information asymmetry; constructed an incentive model for reserve emergency medical supply production capacity; and solved the optimal reward and punishment coefficients of NPOs, optimal effort level of enterprises, and benefits of disaster reduction. The study also verified the validity of the model using numerical examples and a sensitivity analysis. In taking up the findings of the study, this paper discusses the effects of several important exogenous variables on the optimal decision strategies of NPOs and enterprises and offers management-related insights for NPOs.

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Early warning response to rainstorm: Designing a model with incentive and supervision mechanisms based on the principal-agent theory

Ma,

Liu,

2024

International Journal of Disaster Risk Reduction

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A Penalty Function Method for the Principal-Agent Problem with an Infinite Number of Incentive-Compatibility Constraints under Moral Hazard

Cited by 4 publications

References 26 publications

Voltage Control of Unbalanced Distribution Systems with Penetration of Renewable Sources: A Gradient-Based Optimization Approach

Voltage Control of Unbalanced Distribution Systems with Penetration of Renewable Sources: A Gradient-Based Optimization Approach

Production Capacity Reserve Strategy of Emergency Medical Supplies: Incentive Model for Nonprofit Organizations

Early warning response to rainstorm: Designing a model with incentive and supervision mechanisms based on the principal-agent theory

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