Using EPECs to Model Bilevel Games in Restructured Electricity Markets with Locational Prices

Published Online:https://doi.org/10.1287/opre.1070.0431

References

  • Ahn B. H., Hogan W. W. On convergence of the PIES algorithm for computing equilibria. Oper. Res. (1982) 30:281–300LinkGoogle Scholar
  • Alvarado F., Meng J., DeMarco C. L., Mota W. S. Stability analysis of interconnected power systems coupled with market dynamics. IEEE Trans. Power Systems (2001) 16(4):696–701CrossrefGoogle Scholar
  • Anitescu M. On using the elastic mode in nonlinear programming approaches to mathematical programs with complementarity constraints. SIAM J. Optim. (2005) 15(4):1203–1236CrossrefGoogle Scholar
  • Backerman S. R., Rassenti S. J., Smith V. L. Efficiency and income shares in high demand energy networks: Who receives the congestion rents when a line is constrained? Pacific Econom. Rev. (2000) 5:331–347CrossrefGoogle Scholar
  • Balder E. J. A unifying approach to existence of Nash equilibria. Internat. J. Game Theory (1995) 24:79–94CrossrefGoogle Scholar
  • Ben-Tal A., Zowe J. A simplified theory of first and second order conditions for extreme problems in topological vector spaces. Math. Programming Stud. (1982) 19:39–76CrossrefGoogle Scholar
  • Berry C. A., Hobbs B. F., Meroney W. A., O'Neill R. P., Stewart W. R. Understanding how market power can arise in network competition: A game theoretic approach. Utilities Policy (1999) 8:139–158CrossrefGoogle Scholar
  • Bonnans J. F., Shapiro A. Optimization problems with perturbations: A guided tour. SIAM Rev. (1998) 40:202–227CrossrefGoogle Scholar
  • Brooke A., Kendrick D., Meeraus A.GAMS—A User's Guide, Release 2.25 (1992) (The Scientific Press, South San Francisco, CA) Google Scholar
  • Cardell J. B., Hitt C. C., Hogan W. W. Market power and strategic interaction in electricity networks. Resource Energy Econom. (1997) 19:109–137CrossrefGoogle Scholar
  • Chao H.-P., Peck S. An institutional design for an electricity contract market with central dispatch. Energy J. (1997) 18:85–110CrossrefGoogle Scholar
  • Clarke F.Nonsmooth Analysis (1993) (Wiley-Interscience, New York) Google Scholar
  • David Butchers & Associates The New Zealand electricity market (NZEM). (2001) . http://www.dba.org.nz/PDFs/Electricity%20Market.pdf.Google Scholar
  • Dirkse S., Ferris M. C. The PATH solver: A non-monotone stabilization scheme for mixed complementarity problems. Optim. Methods Software (1995) 5:123–156CrossrefGoogle Scholar
  • Drud A. S. CONOPT—A large-scale GRG code. ORSA J. Comput. (1994) 6:207–216LinkGoogle Scholar
  • Ehrenmann A. Equilibrium problems with equilibrium constraints and their application to electricity markets. (2004a) . Ph.D. dissertation, Judge Institute of Management, University of Cambridge, Cambridge, UKGoogle Scholar
  • Ehrenmann A. Manifolds of multi-leader Cournot equilibria. Oper. Res. Lett. (2004b) 32:121–125CrossrefGoogle Scholar
  • Ehrenmann A., Neuhoff K. A comparison of electricity market designs in networks. (2003) . Working paper CMI EP 31, The CMI Electricity Project, Department of Applied Economics, University of Cambridge, Cambridge, UKGoogle Scholar
  • Facchinei F., Pang J. S.Finite-Dimensional Variational Inequalities and Complementarity Problems (2003) I(Springer, New York) Springer Series in Operations ResearchGoogle Scholar
  • Ferris M. C., Munson T. S. Interfaces to PATH 3.0: Design, implementation and usage. Comput. Optim. Appl. (1999) 12:207–227CrossrefGoogle Scholar
  • Fletcher R., Leyffer S. Solving mathematical program with complementarity constraints as nonlinear programs. Optim. Methods Software (2004) 19:15–40CrossrefGoogle Scholar
  • Fletcher R., Leyffer S., Ralph D., Scholtes S. Local convergence of SQP methods for mathematical programs with equilibrium constraints. SIAM J. Optim. (2006) 17(1):259–286CrossrefGoogle Scholar
  • Fukushima M., Pang J.-S., Théra M., Tichatschke R. Convergence of a smoothing continuation method for mathematical programs with complementarity constraints. Ill-Posed Variational Problems and Regularization Techniques (2000) (Springer, Berlin, Heidelberg, Germany) 99–110Google Scholar
  • Green R. J., Newbery D. M. Competition in the British electricity spot market. J. Political Econom. (1992) 100:929–953CrossrefGoogle 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) 15:637–645CrossrefGoogle Scholar
  • Hogan W. Contract networks for electric power transmission. J. Regulatory Econom. (1992) 4:211–242CrossrefGoogle Scholar
  • Hu X. Mathematical programs with complementarity constraints and game theory models in electricity markets. (2003) . Ph.D. thesis, Department of Mathematics and Statistics, University of Melbourne, Parkville, Victoria, AustraliaGoogle Scholar
  • Hu X., Ralph D., Li D. Nash equilibria for games in competitive electricity markets under network constraints. Proc. ICOTA 2001, 5th Internat. Conf. Optim.: Techniques and Appl. (2001) University of Hong Kong, Hong Kong, ChinaGoogle Scholar
  • Hu X., Ralph D. Convergence of a penalty method for mathematical programming with complementarity constraints. J. Optim. Theory Appl. (2004) 123:365–390CrossrefGoogle Scholar
  • Hu X., Ralph D., Ralph E., Bardsley P., Ferris M. Electricity generation with looped transmission networks: Bidding to an ISO. (Revised 2004) . Working paper CMI EP 65, The CMI Electricity Project, Department of Applied Economics, University of Cambridge, Cambridge, UKGoogle Scholar
  • Klemperer P. D., Meyer M. A. Supply function equilibria in oligopoly under uncertainty. Econometrica (1989) 57:1243–1277CrossrefGoogle Scholar
  • Leyffer S., Munson T. Solving multi-leader-follower games. (2005) . Preprint, ANL/MCS-P1243-0405, Mathematics and Computer Science Division, Argonne National Laboratory, Argonne, ILGoogle Scholar
  • Liu M., Gross G. Role of distribution factors in congestion revenue rights applications. IEEE Trans. Power Systems (2004) 19:802–810CrossrefGoogle Scholar
  • Luo Z. Q., Pang J.-S., Ralph D.Mathematical Programs with Equilibrium Constraints (1996) (Cambridge University Press, Cambridge, UK) CrossrefGoogle Scholar
  • Murphy F., Smeers Y. Generation capacity expansion in imperfect competitive restructured electricity markets. (2002) . Discussion paper 2002/69, CORE, Université Catholique de Louvain, Louvain-la-Neuve, BelgiumGoogle Scholar
  • Myerson R. B.Game Theory: Analysis of Conflict (1991) (Harvard University Press, Cambridge, MA) Google Scholar
  • Nasser T.-O. Transmission congestion contracts and strategic behavior in generation. Electricity J. (1998) 11:32–39CrossrefGoogle Scholar
  • Oren S. S. Economic inefficiency of passive transmission rights in congested electricity systems with competitive generation. Energy J. (1997) 18:63–83CrossrefGoogle Scholar
  • Outrata J. V. A note on a class of equilibrium problems with equilibrium constraints. Kybernetika (2003) 40:585–594Google Scholar
  • Ralph D. Global convergence of Newton's method for nonsmooth equations, via the path search. Math. Oper. Res. (1994) 19:352–389LinkGoogle Scholar
  • Robinson S. M. Newton's method for a class of nonsmooth functions. Set-Valued Anal. (1994) 2:291–305CrossrefGoogle Scholar
  • Saadat H.Power Systems (1999) (McGraw-Hill, Boston, MA) Google Scholar
  • Scheel M., Scholtes S. Mathematical programs with complementarity 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
  • Scholtes S., Stöhr M. How stringent is the linear independence assumption for mathematical programs with stationarity constraints? Math. Oper. Res. (2001) 21:851–863LinkGoogle Scholar
  • Seeley K., Lawarrée J., Liu C. C. Analysis of electricity market rules and their effects on strategic behaviour in a noncongestive grid. IEEE Trans. Power Systems (2000) 15:157–162CrossrefGoogle Scholar
  • Shapiro A. On concepts of directional differentiability. J. Optim. Theory Appl. (1990) 66:477–487CrossrefGoogle Scholar
  • Stoft S. Financial transmission rights meet Cournot: How TCCs curb market power. Energy J. (1999) 20:1–23CrossrefGoogle Scholar
  • Su C.-L. Analysis on forward market equilibrium model. (2004a) . Manuscript, Department of Management Science and Engineering, Stanford University, Stanford, CAGoogle Scholar
  • Su C.-L. A sequential NCP algorithm for solving equilibrium problems with equilibrium constraints. (2004b) . Manuscript, Department of Management Science and Engineering, Stanford University, Stanford, CAGoogle Scholar
  • Wang X., Li Y., Zhang S. Oligopolistic equilibrium analysis for electricity markets: A nonlinear complementarity approach. IEEE Trans. Power Systems (2004) 19:1348–1355CrossrefGoogle Scholar
  • Weber J. D., Overbye T. J. A two-level optimization problem for analysis of market bidding strategies. IEEE PES Summer Meeting (1999) Edmonton, Alberta, CanadaCrossrefGoogle Scholar
  • Wood A. J., Wollenberg B. F.Power Generation, Operation, and Control (1996) (John Wiley & Sons, New York) Google Scholar
  • Wu F., Varaiya P. Coordinated multilateral trades for electric power networks: Theory and implementation. Internat. J. Electrical Power Energy Systems (1999) 21(2):75–102CrossrefGoogle Scholar
  • Yao J., Adler I., Oren S. S. Modeling and computing two-settlement oligopolistic equilibrium in a congested electricity network. Oper. Res. (2007) . ForthcomingGoogle Scholar
  • Younes Z., Ilic M. Generation strategies for gaming transmission constraints: Will the deregulated electric power market be an oligopoly? Decision Support Systems (1999) 24:207–222CrossrefGoogle 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.