Modeling and Computing Two-Settlement Oligopolistic Equilibrium in a Congested Electricity Network

Published Online:https://doi.org/10.1287/opre.1070.0416

References

  • Allaz B. Oligopoly, uncertainty and strategic forward transactions. Internal J. Indust. Organ. (1992) 10:297–308CrossrefGoogle Scholar
  • Allaz B., Vila J.-L. Cournot competition, forward markets and efficiency. J. Econom. Theory (1993) 59:1–16CrossrefGoogle Scholar
  • Borenstein S., Bushnell J., Stoft S. The competitive effects of transmission capacity in a deregulated electricity industry. RAND J. Econom. (2000) 31(2):294–325CrossrefGoogle Scholar
  • Chao H.-P., Peck S. C. A market mechanism for electric power transmission. J. Regulatory Econom. (1996) 10(1):25–60CrossrefGoogle Scholar
  • Chen X., Fukushima M. A smoothing method for a mathematical program with P-matrix linear complementarity constraints. Computational Optim. Appl. (2004) 27:223–246CrossrefGoogle Scholar
  • Cottle R. W., Pang J. S., Stone R. E.The Linear Complementarity Problem (1992) (Academic Press, Boston, MA) Google Scholar
  • Facchinei F., Jiang H., Qi L. A smoothing method for mathematical programs with equilibrium constraints. Math. Programming (1999) 85:107–134CrossrefGoogle Scholar
  • Fletcher R., Leyffer S. Solving mathematical programs with complementarity constraints as nonlinear programs. Optim. Methods Software (2004) 19:15–40CrossrefGoogle Scholar
  • Fudenberg D., Tirole J.Game Theory (1991) (MIT Press, Cambridge, MA) Google Scholar
  • Fukushima M., Lin G.-H. Smoothing methods for mathematical programs with equilibrium constraints. Internat. Conf. Informatics Res. for Development Knowledge Soc. Infrastructure (ICKS'04) (2004) Kyoto, Japan:206–213CrossrefGoogle Scholar
  • Fukushima M., Tseng P. An implementable active-set algorithm for computing a B-stationary point of a mathematical problem with linear complementarity constraints. SIAM J. Optim. (2002) 12(3):724–739CrossrefGoogle Scholar
  • Fukushima M., Luo Z.-Q., Pang J.-S. A globally convergent sequential quadratic programming algorithm for mathematical programs with linear complementarity constraints. Computational Optim. Appl. (1998) 10(1):5–34CrossrefGoogle Scholar
  • Green R. J. The electricity contract market in England and Wales. J. Indust. Econom. (1999) 47(1):107–124CrossrefGoogle Scholar
  • Hambley A. R.Electrical Engineering: Principles and Applications (2004) 3rd ed.(Prentice Hall, Upper Saddle River, NJ) Google Scholar
  • Harker P. T. Generalized Nash games and quasivariational inequalities. Eur. J. Oper. Res. (1991) 54:81–94CrossrefGoogle Scholar
  • Hobbs B. F. Linear complementarity models of Nash-Cournot competition in bilateral and POOLCO power markets. IEEE Trans. Power Systems (2001) 16(2):194–202CrossrefGoogle Scholar
  • Hobbs B. F., Metzler C. B., Pang J.-S. Strategic gaming analysis for electric power systems: An MPEC approach. IEEE Trans. Power Systems (2000) 15(2):638–645CrossrefGoogle Scholar
  • Hu X. Mathematical programs with complementarity constraints and game theory models in electricity markets. (2002) . Ph.D. thesis, Department of Mathematics and Statistics, University of Melbourne, Melbourne, AustraliaGoogle Scholar
  • Hu X. M., Ralph D. Convergence of a penalty method for mathematical programming with complementarity constraints. J. Optim. Theory Appl. (2004) 123(2):365–390CrossrefGoogle Scholar
  • Jiang H., Ralph D. QPECgen: A MATLAB generator for mathematical programs with quadratic objectives and affine variational inequality constraints. Computational Optim. Appl. (1999) 13:25–49CrossrefGoogle Scholar
  • Kamat R., Oren S. S. Multi-settlement systems for electricity markets: Zonal aggregation under network uncertainty and market power. J. Regulatory Econom. (2004) 25(1):5–37CrossrefGoogle Scholar
  • Luo Z. Q., Pang J. S., Ralph D.Mathematical Programs with Equilibrium Constraints (1996) (Cambridge University Press, Cambridge, UK) CrossrefGoogle Scholar
  • Metzler C., Hobbs B. F., Pang J. S. Nash-Cournot equilibria in power markets on a linearized DC network with arbitrage: Formulations and properties. Networks Spatial Theory (2003) 3(2):123–150CrossrefGoogle Scholar
  • Neuhoff K., Barquin J., Boots M. G., Ehrenmann A., Hobbs B. F., Rijkers F. A. M., Vázquez M. Network-constrained models of liberalized electricity markets: The devil is in the details. Energy Econom. (2005) 27(3):495–525CrossrefGoogle Scholar
  • Newbery D. M. Competition, contracts, and entry in the electricity spot market. Rand J. Econom. (1998) 29(4):726–749CrossrefGoogle Scholar
  • Oren S. S. Economic inefficiency of passive transmission rights in congested electricity systems with competitive generation. Energy J. (1997) 18:63–83CrossrefGoogle Scholar
  • Pang J.-S., Fukushima M. Quasi-variational inequalities, generalized Nash equilibria and multi-leader-follower games. Computational Management Sci. (2005) 2:21–56CrossrefGoogle Scholar
  • Powell A. Trading forward in an imperfect market: The case of electricity in Britain. Econom. J. (1993) 103:444–453Google Scholar
  • Ralph D., Wright S. J. Some properties of regularization and penalization schemes for MPECs. Optim. Methods Software (2004) 19(5):527–556CrossrefGoogle Scholar
  • Scheel H., Scholtes S. Mathematical programs with equilibrium constraints: Stationarity, optimality, and sensitivity. Math. Oper. Res. (2000) 25:1–22LinkGoogle Scholar
  • Scholtes S. Convergence properties of a regularization scheme for mathematical programs with complementarity constraints. SIAM J. Optim. (2001) 11:918–936CrossrefGoogle Scholar
  • Smeers Y., Wei J.-Y. Spatial oligopolistic electricity models with Cournot firms and opportunity cost transmission prices. (1997) . Working paper, Center for Operations Research and Econometrics, Université Catholique de Louvain, Louvain-la-Neuve, BelgiumGoogle Scholar
  • Su C.-L. Equilibrium problem with equilibrium constraints: Stationarities, algorithms and applications. (2005) . Ph.D. thesis, Department of Management Science and Engineering, Stanford University, Stanford, CAGoogle Scholar
  • von der Fehr N.-H. M., Harbord D. Long-term contracts and imperfectly competitive spot markets: A study of UK electricity industry. (1992) . Memorandum 14, Department of Economics, University of Oslo, Oslo, NorwayGoogle Scholar
  • Wei J.-Y., Smeers Y. Spatial oligopolistic electricity models with Cournot firms and regulated transmission prices. Oper. Res. (1999) 47(1):102–112LinkGoogle Scholar
  • Yao J., Oren S. S., Adler I. Computing Cournot equlibria in two-settlement electricity markets with transmission constraints. Proc. 37th Hawaii Internat. Conf. Systems Sci. (2004) Big Island, HIGoogle Scholar
  • Yao J., Oren S. S., Hobbs B. F. A hybrid Bertrand-Cournot model of electricity markets with multiple subnetworks. (2006) . Working paper, Department of Industrial Engineering and Operations Research, University of California, Berkeley, CAGoogle Scholar
  • Yao J., Willems B., Oren S. S., Adler I. Cournot equilibrium in price-capped two-settlement electricity markets. Proc. 38th Hawaii Internat. Conf. Systems Sci. (2005) Big Island, HIGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.