Title :
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
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;
Conference_Titel :
Power and Energy Society General Meeting - Conversion and Delivery of Electrical Energy in the 21st Century, 2008 IEEE
Conference_Location :
Pittsburgh, PA
Print_ISBN :
978-1-4244-1905-0
Electronic_ISBN :
1932-5517
DOI :
10.1109/PES.2008.4596845
