An Empirical Study of Applied Game Theory: Transmission Constrained Cournot Behavior

Cunningham,; Baldick,; Baughman,

doi:10.1109/mper.2002.4311684

Cited by 5 publications

(8 citation statements)

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“…Its simplicity and, in many cases, ease of computation have made the Cournot conjecture a popular game concept in power market models [2], [6], [14], [17], [51], [52], [68], [71]. Another argument in its favor is that markets involving long-term commitments to capacity may show Cournot-type behavior in the long run, even if the firms compete on price in the short run [70].…”

Section: Applications Of Alternative Interactions To Power Marketsmentioning

confidence: 99%

“…Solutions to many of the equilibrium models mentioned above are obtained either by exhaustive enumeration of combinations of strategies ("payoff matrices") which are then examined for Nash equilibria [17], or by closed-form solution of simple equilibrium models [8]. Neither approach can be used for large-scale models with many players and transmission limits or other constraints.…”

Section: Complementarity Models On DC Networkmentioning

confidence: 99%

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Oligopolistic competition in power networks: a conjectured supply function approach

Day

Hobbs

Pang

2002

IEEE Trans. Power Syst.

407

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Conjectured supply function (CSF) models of competition among power generators on a linearized dc network are presented. As a detailed survey of the power market modeling literature shows, CSF models differ from previous approaches in that they represent each of GenCo's conjectures regarding how rival firms will adjust sales in response to price changes. The CSF approach is a more realistic and flexible framework for modeling imperfect competition than other models for three reasons. First, the models include as a special case the Cournot conjecture that rivals will not change production if prices change; thus, the CSF framework is more general. Second, Cournot models cannot be used when price elasticity of demand is zero, but the proposed models can. Third, unlike supply function equilibrium models, CSF equilibria can be calculated for large transmission networks. Existence and uniqueness properties for prices and profits are reported. An application shows how transmission limits and strategic interactions affect equilibrium prices under forced divestment of generation.This section provides a review of alternative approaches to modeling GenCo interactions in oligopolistic power markets. We include overviews of: equilibrium modeling approaches; representations of GenCo strategic interactions and their application; and complementarity models using dc networks. A. Use of Equilibrium Models for Power MarketsMost models of generator competition are based upon a general approach of defining a market equilibrium as a set of prices, producer input and output decisions, transmission flows, and consumption that simultaneously satisfy each market participant's first-order conditions for maximization of their net benefits [Karush-Kuhn-Tucker (KKT) conditions] while clearing the market (supply demand). The complete set of 0885-8950/02$17.00

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Section: Applications Of Alternative Interactions To Power Marketsmentioning

confidence: 99%

Section: Complementarity Models On DC Networkmentioning

confidence: 99%

Oligopolistic competition in power networks: a conjectured supply function approach

Day

Hobbs

Pang

2002

IEEE Trans. Power Syst.

407

View full text Add to dashboard Cite

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“…inverse of the sum of the slopes of the competitors' strategies, as follows: (4) We then define in an area in terms of the markups in each zone :…”

Section: Numerical Resultsmentioning

confidence: 99%

“…This transportation approach is commonly used in the representation of major inter-regional transmission constraints. Simplifying Kirchhoff's laws into a transportation model [24] and considering perfectly inelastic demand, 4 [19] becomes (1) 2 Two nodes and belong to the same area , neglecting network losses, when their nodal prices are equal and when they are interconnected by a path of nodes with same price. 3 Existence and uniqueness cannot be guaranteed when including technical constraints such as generation maximum capacities.…”

Section: Csfe With Network Capacity Constraintsmentioning

confidence: 99%

“…However, the numerical solutions obtained from all the simulated cases do include maximum generation constraints, and convergence has been empirically verified with good performance (see [25]). 4 This assumption can lead to overestimated prices. where is the index of companies, and are the indices for the nodes, is the production of company at node , is the nodal price computed by solving (1), is the nodal demand, is the power flow through the line from to with being its maximum capacity and, finally, is the local linear approximation of the nodal SF, is the minimum offered production, and is its slope [thus,…”

Section: Csfe With Network Capacity Constraintsmentioning

confidence: 99%

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Dynamics of Market Power in ERCOT System: A Fundamental CSFE With Network Constraints

Díaz

Webster

Villar

et al. 2016

IEEE Trans. Power Syst.

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Previous studies of market power within a regional system have considered multiple competing generation operators and the role of transmission constraints. However, these studies typically assume simplified structures in which each operator is restricted to a unique node in a transmission constrained network. Real systems typically have operators making decisions for units in several zones at once. Past studies also implicitly treated market power as a static concept for a given set of market rules and network configuration. We demonstrate that market power is dynamic, and can vary significantly with fuel prices and even with large-scale weather patterns. We also demonstrate the impact on region-wide market power of operators that manage units in multiple zones. We use the Electric Reliability Council of Texas (ERCOT) as an illustrative case study, and apply a conjectured supply function equilibrium (CSFE) approach that accounts for transmission constraints. We show that the companies with greater influence on the market price will depend on the relative prices of coal and natural gas. We also show that a weather event, such as a period without any wind, can have a substantial impact on market power.

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Optimization model of new energy consumption based on load demand-side response

Guan,

Cai,

Gao

et al. 2024

J. Phys.: Conf. Ser.

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As a technically and economically feasible and potentially resource-rich regulation tool, demand-side response can effectively strengthen the guarantee of new energy consumption, and is expected to play an enhanced key role in the construction of new power systems. This paper analyzes the factors affecting the linkage between demand-side and new energy generation side, the promotion of new energy consumption by demand-side response, and proposes a method to respond to the change of new energy output from the customer side, using interruptible load, transferable load, shiftable load, and curtailable load strategies to respond to the peak regulation problem brought by new energy access to the grid. The optimal demand-side response strategy is obtained by constructing a new energy consumption optimization model and solving it with the direct non-inferiority solution method, taking into account the economic and new energy consumption objectives. Finally, the effectiveness of the method is verified by simulating the IEEE 37-node system with multiple new energy configurations.

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An Empirical Study of Applied Game Theory: Transmission Constrained Cournot Behavior

Cited by 5 publications

References 0 publications

Oligopolistic competition in power networks: a conjectured supply function approach

Oligopolistic competition in power networks: a conjectured supply function approach

Dynamics of Market Power in ERCOT System: A Fundamental CSFE With Network Constraints

Optimization model of new energy consumption based on load demand-side response

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