A comparison of Nash equilibria analysis and agent-based modelling for power markets
In this paper we compare Nash equilibria analysis and agent-based modelling for assessing the market dynamics of network-constrained pool markets. Power suppliers submit their bids to the market place in order to maximize their payoffs, where we apply reinforcement learning as a behavioral agent model. The market clearing mechanism is based on the locational marginal pricing scheme. Simulations are carried out on a benchmark power system. We show how the evolution of the agent-based approach relates to the existence of a unique Nash equilibrium or multiple equilibria in the system. Additionally, the parameter sensitivity of the results is discussed. [All rights reserved Elsevier]
WOS:000242261600003
2006
28
9
599
607
REVIEWED
Event name | Event place | Event date |
Liege, Belgium | August 22-26, 2005 | |