Learning the demand function in oligopoly game for electric power bidding market

Demand function is partially known by all producers in electric power market, which is a important factor for power producers to choose their optimal bidding strategy. This paper presents a dynamic learning model, based on the discrepancy between the expected price of power producers and the price they actually observe, which has a unique steady state, where any subjective demand function coincides with the true demand function. In the particular case of a duopoly power producer, an exact delimitation of the stability region in the parameters´ space is given, and the bifurcation, chaos attractor and the control of chaos applied delayed feedback control method, are analysed with the help of numerical simulations.