Bidding Learning Model and Its Analysis in Oligopoly Power Market with Linear Demand Function

With the utility function considering power producers´ risk factor, a learning model for power bidding to stochastic demand is presented, and whose stable condition is analyzed. Then the simulation of power market consisted of three power producers is done, in which the bifurcation and chaos control of the learning model is discussed, the analysis indicates that, (1) the chaos of bidding learning system can be controlled by using delayed feedback methods. (2) the more risk-averse, the lower producers´ bid, the larger the fluctuation of power demand, the lower bid. (3) when the risk-averse and the demand fluctuation reach some extent, the bidding learning system will walk out its chaos and into equilibrium state, which will locate in a lower level.