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

Jian Yao
Jian Yao
[email protected]
Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94720
Search for more papers by this author
,
Ilan Adler
Ilan Adler
[email protected]
Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94720
Search for more papers by this author
,
Shmuel S. Oren
Shmuel S. Oren
[email protected]
Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94720
Search for more papers by this author

Jian Yao

[email protected]

Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94720

Search for more papers by this author

Ilan Adler

[email protected]

Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94720

Search for more papers by this author

Shmuel S. Oren

[email protected]

Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94720

Search for more papers by this author

Published Online:19 Nov 2007https://doi.org/10.1287/opre.1070.0416

Supplemental Material

opre.1070.0416-sm-ec.pdf (68 KB)

Cited by
- The impact of carbon capture technologies on energy prices
  Structural Change and Economic Dynamics, Vol. 78
- Augmented Lagrangian Neural Network for Solving Mathematical Programs with Equilibrium Constraints
  17 March 2026 | Journal of Optimization Theory and Applications, Vol. 209, No. 1
- Sustainable life cycle management of batteries in a closed-loop supply chain under hierarchical cost-sharing contracts and carbon policies
  International Journal of Production Economics, Vol. 290
- Valuation of power purchase agreements for corporate renewable energy procurement
  European Journal of Operational Research, Vol. 326, No. 3
- Learning Market Equilibria Preserving Statistical Privacy Using Performative Prediction
  IEEE Transactions on Automatic Control, Vol. 70, No. 11
- An analysis of mergers in the presence of uncertainty in renewable energy integration costs
  Energy Economics, Vol. 150
- Tariff Versus Sanction Under Bounded Rationality
  21 January 2025
- Game-theoretic analysis of suppliers’ pricing power in thermal-electric local energy markets
  Energy, Vol. 313
- Carbon capture and renewable energy policies: Could policy harmonization be a puzzle piece to solve the electricity crisis?
  Energy Economics, Vol. 136
- Optimal production decision of hybrid power generation enterprises in multi-quota policy coupled markets
  Energy Economics, Vol. 134
- Technical Note—Multimarket Cournot Equilibria with Heterogeneous Resource-Constrained Firms
  René Caldentey,
  Martin B. Haugh
  22 February 2024 | Operations Research, Vol. 72, No. 3
- Computational Performance of Deep Reinforcement Learning to Find Nash Equilibria
  3 January 2023 | Computational Economics, Vol. 63, No. 2
- Electric Utility Mergers in the Presence of Distributed Renewable Energy
  3 June 2024
- Supply chain strategies in the presence of livestream e-commerce: channel leadership and low-carbon promotion
  8 December 2023 | Annals of Operations Research, Vol. 98
- Flexible supply meets flexible demand: prosumer impact on strategic hydro operations
  9 May 2023 | Computational Management Science, Vol. 20, No. 1
- Optimal production decision of hybrid power generation enterprises in complex trading conditions
  Energy Reports, Vol. 9
- Predicting the Gap in the Day-Ahead and Real-Time Market Prices Leveraging Exogenous Weather Data
  4 November 2023 | Algorithms, Vol. 16, No. 11
- Leader–follower equilibria to examine investment decisions in grid resilience‐enhancing measures
  21 April 2022 | Risk Analysis, Vol. 43, No. 2
- Equilibria in Network Constrained Energy Markets
  IFAC-PapersOnLine, Vol. 56, No. 2
- Economic withholding under high penetration of wind power production: A robust equilibrium method
  International Journal of Electrical Power & Energy Systems, Vol. 142
- Should Electricity Market Designs be Improved to Drive Decarbonization?
  14 October 2022 | , Vol. 129
- A tractable multi-leader multi-follower peak-load-pricing model with strategic interaction
  13 December 2021 | Mathematical Programming, Vol. 195, No. 1-2
- Integration of long‐ and short‐term contracts in a market for capacity
  1 July 2022 | Production and Operations Management, Vol. 31, No. 7
- Has the inter-regional transmission expansion promoted the low-carbon transition of China’s power sector?
  Computers & Industrial Engineering, Vol. 168
- Transparency and Control in Platforms for Networked Markets
  John Pang,
  Weixuan Lin,
  Hu Fu,
  Jack Kleeman,
  Eilyan Bitar,
  Adam Wierman
  7 March 2022 | Operations Research, Vol. 70, No. 3
- The resilience of logistics network against node failures
  International Journal of Production Economics, Vol. 244
- Trilevel Mixed Integer Optimization for Day-Ahead Spinning Reserve Management of Electric Vehicle Aggregator With Uncertainty
  IEEE Transactions on Smart Grid, Vol. 13, No. 1
- A Review on the Complementarity Modelling in Competitive Electricity Markets
  1 November 2021 | Energies, Vol. 14, No. 21
- Electric utility mergers in the presence of distributed renewable energy
  Energy Economics, Vol. 101
- Probably Approximately Correct Nash Equilibrium Learning
  IEEE Transactions on Automatic Control, Vol. 66, No. 9
- Optimal Reserve Management of Electric Vehicle Aggregator: Discrete Bilevel Optimization Model and Exact Algorithm
  IEEE Transactions on Smart Grid, Vol. 12, No. 5
- Multiregional Oligopoly with Capacity Constraints
  Humoud Alsabah,
  Benjamin Bernard,
  Agostino Capponi,
  Garud Iyengar,
  Jay Sethuraman
  18 December 2020 | Management Science, Vol. 67, No. 8
- Nash equilibria in electricity pool markets with large-scale wind power integration
  Energy, Vol. 228
- Welfare-maximizing transmission capacity expansion under uncertainty
  7 June 2021 | Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences, Vol. 379, No. 2202
- Development of a Day-ahead Market Simulator based on Strategic Behaviors of Power Producers
  IEEJ Transactions on Power and Energy, Vol. 141, No. 6
- Two-Stage Stochastic Variational Inequalities: Theory, Algorithms and Applications
  12 October 2019 | Journal of the Operations Research Society of China, Vol. 9, No. 1
- Transmission Expansion Planning Outside the Box: A Bilevel Approach
  20 November 2020
- Selling Wind
  1 January 2021 | The Energy Journal, Vol. 42, No. 1
- Power Market Equilibrium Analysis with Large-scale Hydropower System Under Uncertainty
- Has the inter-regional transmission grid promoted clean power development? A quantitative assessment on China’s electricity sector
  Journal of Cleaner Production, Vol. 269
- A Structural Characterization of Market Power in Electric Power Networks
  IEEE Transactions on Network Science and Engineering, Vol. 7, No. 3
- Analysis of imperfect competition in natural gas supply contracts for electric power generation: A closed-loop approach
  Energy Economics, Vol. 87
- Review on generation and transmission expansion co‐planning models under a market environment
  18 February 2020 | IET Generation, Transmission & Distribution, Vol. 14, No. 6
- Game Theory Application for Finding Optimal Operating Point of Multi-production System Under Fluctuations of Renewable and Various Load Levels
  10 July 2020
- Applications of Bilevel Optimization in Energy and Electricity Markets
  24 November 2020
- On the efficiency of local electricity markets under decentralized and centralized designs: a multi-leader Stackelberg game analysis
  19 January 2018 | Central European Journal of Operations Research, Vol. 27, No. 4
- Electric Power Industry: Operational and Public Policy Challenges and Opportunities
  1 November 2019 | Production and Operations Management, Vol. 28, No. 11
- On the Role of a Market Maker in Networked Cournot Competition
  Desmond Cai,
  Subhonmesh Bose,
  Adam Wierman
  8 May 2019 | Mathematics of Operations Research, Vol. 44, No. 3
- Cournot Competition in Networked Markets
  Kostas Bimpikis,
  Shayan Ehsani,
  Rahmi İlkılıç
  19 February 2019 | Management Science, Vol. 65, No. 6
- Multimodal Transportation Flows in Energy Networks with an Application to Crude Oil Markets
  6 February 2018 | Networks and Spatial Economics, Vol. 19, No. 2
- Transactive control of industrial heating–ventilation–air-conditioning units in cold-storage warehouses for demand response
  Sustainable Energy, Grids and Networks, Vol. 18
- A game-theoretic analysis of transmission-distribution system operator coordination
  European Journal of Operational Research, Vol. 274, No. 1
- Nonconvex equilibrium models for gas market analysis: Failure of standard techniques and alternative modeling approaches
  European Journal of Operational Research, Vol. 273, No. 3
- Demand-Side Management and Demand Response for Smart Grid
  2 September 2018
- Multi-Period and Multi-Spatial Equilibrium Analysis in Imperfect Electricity Markets: A Novel Multi-Agent Deep Reinforcement Learning Approach
  IEEE Access, Vol. 7
- On supply-function equilibria in radial transmission networks
  European Journal of Operational Research, Vol. 271, No. 3
- Distributed continuous-time algorithm for solving linear complementarity problems with exponential convergence
- Can Merchant Demand Response Affect Investments in Merchant Energy Storage?
  IEEE Transactions on Power Systems, Vol. 33, No. 3
- Bayesian and Robust Nash Equilibria in Hydrodominated Systems Under Uncertainty
  IEEE Transactions on Sustainable Energy, Vol. 9, No. 2
- Capacity Withholding Constrained by Operational Limits of Generation Under Financial Virtual Divestiture in a Day-Ahead Market
  IEEE Transactions on Power Systems, Vol. 33, No. 1
- Value of Flexible Resources, Virtual Bidding, and Self-Scheduling in Two-Settlement Electricity Markets with Wind Generation—Part I: Principles and Competitive Model
  IEEE Transactions on Power Systems, Vol. 33, No. 1
- Price containment in emissions permit markets: Balancing market risk and environmental outcomes
  27 October 2017 | IISE Transactions, Vol. 49, No. 12
- Planning community energy system in the industry 4.0 era: Achievements, challenges and a potential solution
  Renewable and Sustainable Energy Reviews, Vol. 78
- Two-stage non-cooperative games with risk-averse players
  29 April 2017 | Mathematical Programming, Vol. 165, No. 1
- When doing nothing may be the best investment action: Pessimistic anticipative power transmission planning
  Applied Energy, Vol. 200
- Electricity market mergers with endogenous forward contracting
  27 March 2017 | Journal of Regulatory Economics, Vol. 51, No. 3
- Energy model – A tool for preventing energy dysfunction
  Renewable and Sustainable Energy Reviews, Vol. 73
- Competition in Electricity Markets with Renewable Energy Sources
  1 June 2017 | The Energy Journal, Vol. 38, No. 1_suppl
- Robust Cournot-Bertrand equilibria on power networks
- Appliances considered demand response optimisation for smart grid
  1 March 2017 | IET Generation, Transmission & Distribution, Vol. 11, No. 4
- On the efficiency of networked Stackelberg competition
- Modeling strategic investment decisions in spatial markets
  European Journal of Operational Research, Vol. 256, No. 2
- An Efficient and Incentive Compatible Mechanism for Wholesale Electricity Markets
  IEEE Transactions on Smart Grid, Vol. 8, No. 1
- Nonconvex Equilibrium Models for Gas Market Analysis: Failure of Standard Techniques and Alternative Modeling Approaches
  SSRN Electronic Journal, Vol. 38
- Electric Power Network Oligopoly as a Dynamic Stackelberg Game
  15 December 2016 | Networks and Spatial Economics, Vol. 16, No. 4
- Parameterized supply function equilibrium in power networks
- Pool equilibria including strategic storage
  Applied Energy, Vol. 177
- Assessing market structures in resource markets — An empirical analysis of the market for metallurgical coal using various equilibrium models
  Energy Economics, Vol. 59
- Competition driven bi-level supply offer strategies in day ahead electricity market
- Comparison of Incentive Policies for Renewable Energy in an Oligopolistic Market with Price-Responsive Demand
  1 July 2016 | The Energy Journal, Vol. 37, No. 3
- References
  13 June 2016
- Economic Analysis of Transmission Expansion Planning With Price-Responsive Demand and Quadratic Losses by Successive LP
  IEEE Transactions on Power Systems, Vol. 31, No. 2
- Feasibility problems with complementarity constraints
  European Journal of Operational Research, Vol. 249, No. 1
- Investment Equilibria
  11 June 2016
- Risker: Platform Implementation of Complex System Model for Financial Risk Management in Energy Markets
  Procedia Computer Science, Vol. 83
- Analysis of the effect of voltage level requirements on an electricity market equilibrium model
  International Journal of Electrical Power & Energy Systems, Vol. 71
- An MPEC reformulation of an EPEC model for electricity markets
  Operations Research Letters, Vol. 43, No. 3
- Comparison of Congestion Management Techniques: Nodal, Zonal and Discriminatory Pricing
  1 April 2015 | The Energy Journal, Vol. 36, No. 2
- A Shared-Constraint Approach to Multi-Leader Multi-Follower Games
  8 August 2014 | Set-Valued and Variational Analysis, Vol. 22, No. 4
- The role of a market maker in networked cournot competition
- A Dynamic Mechanism for Wholesale Energy Market: Stability and Robustness
  IEEE Transactions on Smart Grid, Vol. 5, No. 6
- Electricity pooling markets with elastic demand: A mechanism design approach
- The Impact of Imperfect Competition in Emission Permits Trading on Oligopolistic Electricity Markets
  1 July 2014 | The Energy Journal, Vol. 35, No. 3
- Nash Equilibrium in a two-settlement electricity market using competitive coevolutionary algorithms
  International Journal of Electrical Power & Energy Systems, Vol. 57
- Electricity market equilibrium model with voltage constraints
- Competitive co-evolutionary approach to stochastic modeling in deregulated electricity market
- Equilibria in an Oligopolistic Market With Wind Power Production
  IEEE Transactions on Power Systems, Vol. 29, No. 2
- Technology selection and capacity investment under uncertainty
  European Journal of Operational Research, Vol. 232, No. 1
- Distribution Locational Marginal Pricing for Optimal Electric Vehicle Charging Management
  IEEE Transactions on Power Systems, Vol. 29, No. 1
- A Tri-Level Model of Centralized Transmission and Decentralized Generation Expansion Planning for an Electricity Market—Part I
  IEEE Transactions on Power Systems, Vol. 29, No. 1
- Equilibrium in Wholesale Energy Markets: Perturbation Analysis in the Presence of Renewables
  IEEE Transactions on Smart Grid, Vol. 5, No. 1
- A Dynamic Market Mechanism for Markets with Shiftable Demand Response
  IFAC Proceedings Volumes, Vol. 47, No. 3
- Emissions trading, point-of-regulation and facility siting choices in the electric markets
  18 June 2013 | Journal of Regulatory Economics, Vol. 44, No. 3
- Conjectural-Variation-Based Equilibrium Model of a Single-Price Electricity Market With a Counter-Trading Mechanism
  IEEE Transactions on Power Systems, Vol. 28, No. 4
- Addressing supply-side risk in uncertain power markets: stochastic Nash models, scalable algorithms and error analysis
  Optimization Methods and Software, Vol. 28, No. 5
- Modeling the hedging decisions in electricity markets using two-stage games
- Tacit collusion games in pool-based electricity markets under transmission constraints
  25 June 2013 | Mathematical Programming, Vol. 140, No. 2
- An Application of Analytics in Green Electricity Markets With Cap-and-Trade Programs
  20 April 2015 | Engineering Management Journal, Vol. 25, No. 3
- Evaluating the EU ETS impacts on profits, investments and prices of the Italian electricity market
  Energy Policy, Vol. 59
- Generation Investment Equilibria With Strategic Producers—Part I: Formulation
  IEEE Transactions on Power Systems, Vol. 28, No. 3
- Stochastic Nash equilibrium problems: sample average approximation and applications
  22 February 2013 | Computational Optimization and Applications, Vol. 55, No. 3
- Renewable Portfolio Standards in the Presence of Green Consumers and Emissions Trading
  22 May 2012 | Networks and Spatial Economics, Vol. 13, No. 2
- Equilibrium Problems with Equilibrium Constraints
  19 June 2012
- Market power in emissions trading: Strategically manipulating permit price through fringe firms
  Applied Energy, Vol. 96
- A Cournot game analysis on market effects of queuing energy request as demand response
- How will demand response aggregators affect electricity markets? — A Cournot game analysis
- Equilibria in an Oligopolistic Electricity Pool With Stepwise Offer Curves
  IEEE Transactions on Power Systems, Vol. 27, No. 2
- Equilibria in futures and spot electricity markets
  Electric Power Systems Research, Vol. 84, No. 1
- Dynamic Competitive Equilibria in Electricity Markets
  29 November 2011
- Models of Strategic Bidding in Electricity Markets Under Network Constraints
  17 November 2011
- Packaging Energy and Reserves Bids through Risk Penalties for Enhanced Reliability in Co-optimized Markets
- Congestion Management in Electricity Networks: Nodal, Zonal and Discriminatory Pricing
  SSRN Electronic Journal, Vol. 56
- Equilibrium Calculation in Electricity Market Modeled as a Two-stage Stochastic Game using competitive Coevolutionary Algorithms
  IFAC Proceedings Volumes, Vol. 45, No. 21
- The impact of carbon cap and trade regulation on congested electricity market equilibrium
  6 September 2011 | Journal of Regulatory Economics, Vol. 40, No. 3
- Capacity Expansion in the Integrated Supply Network for an Electricity Market
  IEEE Transactions on Power Systems, Vol. 26, No. 4
- A Complementarity Framework for Forward Contracting Under Uncertainty
  Uday V. Shanbhag,
  Gerd Infanger,
  Peter W. Glynn,
  1 August 2011 | Operations Research, Vol. 59, No. 4
- On the Characterization of Solution Sets of Smooth and Nonsmooth Convex Stochastic Nash Games
  SIAM Journal on Optimization, Vol. 21, No. 3
- Economic and Emissions Implications of Load-Based, Source-Based, and First-Seller Emissions Trading Programs Under California AB32
  Yihsu Chen,
  Andrew L. Liu,
  Benjamin F. Hobbs,
  1 June 2011 | Operations Research, Vol. 59, No. 3
- Strategic behavior in power markets under uncertainty
  20 May 2011 | Energy Systems, Vol. 2, No. 2
- Swapping Generators’ Assets: Market Salvation or Wishful Thinking?
  1 April 2011 | The Energy Journal, Vol. 32, No. 2
- Potential impact of recharging plug‐in hybrid electric vehicles on locational marginal prices
  28 October 2010 | Naval Research Logistics (NRL), Vol. 57, No. 8
- The role of energy efficiency spending in Maryland’s implementation of the Regional Greenhouse Gas Initiative
  Energy Policy, Vol. 38, No. 11
- Three modeling paradigms in mathematical programming
  28 July 2010 | Mathematical Programming, Vol. 125, No. 2
- Carbon Charges in Electricity Markets with Strategic Behavior and Transmission
  1 October 2010 | The Energy Journal, Vol. 31, No. 4
- Repeated games in electricity spot and forward markets - An equilibrium modeling and computational framework
- On Cournot Equilibria in Electricity Transmission Networks
  A. Downward,
  G. Zakeri,
  A. B. Philpottt,
  1 July 2010 | Operations Research, Vol. 58, No. 4-part-2
- Welfare Effects of Expansions in Equilibrium Models of an Electricity Market With Fuel Network
  IEEE Transactions on Power Systems, Vol. 25, No. 3
- Demand price sensitivity and market power in a congested fuel and electricity network
- Overview of Electricity Market Equilibrium Problems and Market Power Analysis
  28 September 2010
- Hybrid Bertrand‐Cournot Models of Electricity Markets with Multiple Strategic Subnetworks and Common Knowledge Constraints
  28 September 2010
- Electricity Market Equilibrium with Reactive Power Control
  28 September 2010
- A two stage stochastic equilibrium model for electricity markets with forward contracts
- A Benders Decomposition Method for Solving Stochastic Complementarity Problems with an Application in Energy
  12 February 2010 | Computational Economics, Vol. 35, No. 4
- Evaluation of Market Rules Using a Multi-Agent System Method
  IEEE Transactions on Power Systems, Vol. 25, No. 1
- Pool Strategy of a Producer With Endogenous Formation of Locational Marginal Prices
  IEEE Transactions on Power Systems, Vol. 24, No. 4
- Analyzing Two-Settlement Electricity Market Equilibrium by Coevolutionary Computation Approach
  IEEE Transactions on Power Systems, Vol. 24, No. 3
- Market outcomes in a congested electricity system with fuel supply network
- Implications of CO2 emissions trading for short-run electricity market outcomes in northwest Europe
  16 May 2008 | Journal of Regulatory Economics, Vol. 34, No. 3
- A Power Market Model with Renewable Portfolio Standards, Green Pricing and GHG Emissions Trading Programs

Volume 56, Issue 1

January-February 2008

Pages ii-266

Article Information

Supplemental Material

Metrics

Information

Received:December 01, 2005
Accepted:December 01, 2006
Published Online:November 19, 2007

Cite as

Jian Yao, Ilan Adler, Shmuel S. Oren, (2007) Modeling and Computing Two-Settlement Oligopolistic Equilibrium in a Congested Electricity Network. Operations Research 56(1):34-47.

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

Keywords

PDF download

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

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

Supplemental Material

Volume 56, Issue 1

Article Information

Supplemental Material

Metrics

Information

Cite as

Keywords

Sign Up for INFORMS Publications Updates and News