Analyzing the price-effects of vertical and horizontal market power with agent based simulation

Author

Bunn, Derek W. ; Martoccia, Maria

Author_Institution

London Bus. Sch., London

fYear

2008

fDate

20-24 July 2008

Firstpage

1

Lastpage

6

Abstract

The use of an agent based simulation platform for market structure policy simulations in a restructured electricity markets reveal subtle insights with respect to the limited exercise of market power in situations where more conventional oligopoly models would suggest greater exploitation. The paper describes a detailed market simulation platform with agent strategies emerging as a result of simple reinforcement learning on both profit and capacity utilization. An example applied to addressing the evolution of some of the Italian market structure issues is described.

Keywords

learning (artificial intelligence); multi-agent systems; power markets; power system simulation; pricing; Italian market structure policy; agent based simulation; capacity utilization; oligopoly models; price-effect analysis; reinforcement learning; restructured electricity markets; Analytical models; Computational modeling; Context modeling; Costs; Electricity supply industry; Pattern analysis; Portfolios; Power generation; Power generation economics; Power markets; Electricity Markets; Market Power; Market Structure; Prices; Simulation;

fLanguage

English

Publisher

ieee

Conference_Titel

Power and Energy Society General Meeting - Conversion and Delivery of Electrical Energy in the 21st Century, 2008 IEEE

Conference_Location

Pittsburgh, PA

ISSN

1932-5517

Print_ISBN

978-1-4244-1905-0

Electronic_ISBN

1932-5517

Type

conf

DOI

10.1109/PES.2008.4596845

Filename

4596845