Offer Optimization over Consecutive Periods in Electricity Markets

Andrew Philpott
Department of Engineering Science
University of Auckland


Wednesday, January 11, 2006
4:30 - 5:45 PM
Terman Engineering Center, Room 453


Abstract:

Much of the focus on electricity markets has been devoted to studies of optimization and equilibria over single trading periods. This one-shot model fails to capture the dynamics of repeated interaction between market participants. In particular, the effects of punishment and reward become important in a repeated game. We present a simple duopoly model with uncertain demand that endeavours to represent these effects. In this framework we discuss examples that show how generators can capture monopoly profits in expectation without colluding.

Joint work with Eddie Anderson.

---

Operations Research Colloquia: http://or.stanford.edu/oras_seminars.html