Using Market Simulation to Recognize The Price Maker Firms

Author

Soleymani, S. ; Ranjbar, A.M. ; Shirani, A.R.

Author_Institution

Dept. of Electr. Eng., Sharif Univ. of Technol., Tehran

fYear

2006

Firstpage

1

Lastpage

6

Abstract

This paper proposes a new method for recognizing the price maker firms in the Independent System Operator (ISO)´s point of view. In the proposed methodology, at the first, all firms are supposed to be as price takers. Then the state of each firm will be changed from price taker to price maker and the obtained profit in either of cases is compared. In the proposed methodology the Supply Function Equilibrium (SFE) model is used for modeling a price maker firm´s bidding strategy. If a price maker firm changes the market clearing price (MCP) noticeably, that firm is realized as a price maker. GAMS (general algebraic modeling system) language has been used to solve the market simulation model using MINOS optimization software with non-linear programming.

Keywords

algebra; nonlinear programming; power markets; power system economics; pricing; bidding strategy; general algebraic modeling system; independent system operator; market clearing price; market simulation; nonlinear programming; price maker firms; supply function equilibrium model; Costs; Decision making; Electricity supply industry; Game theory; Nash equilibrium; Paper technology; Power markets; Power measurement; Power system modeling; Power system simulation; Fully Competition; Market Power; Market Simulation; Price Maker; Price Taker;

fLanguage

English

Publisher

ieee

Conference_Titel

Power System Technology, 2006. PowerCon 2006. International Conference on

Conference_Location

Chongqing

Print_ISBN

1-4244-0110-0

Electronic_ISBN

1-4244-0111-9

Type

conf

DOI

10.1109/ICPST.2006.321874

Filename

4115995