Numerical Experiments with Theoretical Model of Gas Market

Structural changes in the European natural gas market such as liberalization, increasing domestic demand, and increasing import dependency have triggered new attempts to model these markets accurately. In this paper, we propose an exhaustive model of the European natural gas supply including the possibility of strategic behaviour of the agents along the value-added chain. Using the fact that the most gas importers are strongly dependent from governmental authorities, we apply the theoretical model, obtained in [1], and compare it with case of pure profit maximization [2].