Modeling the Supplier Agent´s Risk Strategy based on Fuzzy Logic Combined with the Q-Learning Algorithm

The human´s ability for taking risk, which is one of the most important human attributes, has strong effect on his decision making. The bidding problem is an important issue for supplier agent participating in the power market. Thus, in order to get realistic insight about the supplier behavior, it is necessary to model the supplier´s risk strategy and evaluate its effect on the bidding problem. Considering the human´s thinking fuzzy nature, the supplier agent´s risk characteristic is modeled using the fuzzy logic. Combining the fuzzy logic with the Q-learning algorithm, the intelligent supplier agent´ bidding strategy is determined based on his risk strategy. A simulator is designed based on the proposed method. The supplier agents´ realistic behaviors with different characteristics are studied numerically using the designed simulator