The nodal market power index (NMP Index) for modelling and visualising market power

M. R. Hesamzadeh; D. R. Biggar; N. Hosseinzadeh; P. J. Wolfs

doi:10.1109/PES.2010.5590137

The nodal market power index (NMP Index) for modelling and visualising market power

M. R. Hesamzadeh, D. R. Biggar, N. Hosseinzadeh, P. J. Wolfs

Electrical and Computer Engineering

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

7 Citations (Scopus)

Abstract

This paper deals with a systematic way for modelling and visualising market power in liberalised electricity markets. The paper first introduces a new index termed the "Nodal Market Power" index, the NMP index. The NMP index is calculated based on the concept of "social welfare" in economics and the game theory in applied mathematics. The oligopoly electricity market is modelled through a non-cooperative game and the solution concept of the Nash equilibrium. The solution concept of Nash equilibrium is reformulated as an optimisation problem. To tackle the multiple Nash equilibria problem, the worst Nash equilibrium in terms of the social cost to the society is selected. Then after, the NMP index is calculated for each node of power system. A colour contour map is used for visualising the market power using the NMP index.

Original language	English
Title of host publication	IEEE PES General Meeting, PES 2010
DOIs	https://doi.org/10.1109/PES.2010.5590137
Publication status	Published - 2010
Event	IEEE PES General Meeting, PES 2010 - Minneapolis, MN, United States Duration: Jul 25 2010 → Jul 29 2010

Publication series

Name	IEEE PES General Meeting, PES 2010

Other

Other	IEEE PES General Meeting, PES 2010
Country/Territory	United States
City	Minneapolis, MN
Period	7/25/10 → 7/29/10

Keywords

Market power
Nodal market power index
Stackelberg-Worst nash equilibrium

ASJC Scopus subject areas

Energy Engineering and Power Technology

Access to Document

10.1109/PES.2010.5590137

Cite this

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title = "The nodal market power index (NMP Index) for modelling and visualising market power",

abstract = "This paper deals with a systematic way for modelling and visualising market power in liberalised electricity markets. The paper first introduces a new index termed the {"}Nodal Market Power{"} index, the NMP index. The NMP index is calculated based on the concept of {"}social welfare{"} in economics and the game theory in applied mathematics. The oligopoly electricity market is modelled through a non-cooperative game and the solution concept of the Nash equilibrium. The solution concept of Nash equilibrium is reformulated as an optimisation problem. To tackle the multiple Nash equilibria problem, the worst Nash equilibrium in terms of the social cost to the society is selected. Then after, the NMP index is calculated for each node of power system. A colour contour map is used for visualising the market power using the NMP index.",

keywords = "Market power, Nodal market power index, Stackelberg-Worst nash equilibrium",

author = "Hesamzadeh, {M. R.} and Biggar, {D. R.} and N. Hosseinzadeh and Wolfs, {P. J.}",

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AU - Hosseinzadeh, N.

AU - Wolfs, P. J.

PY - 2010

Y1 - 2010

N2 - This paper deals with a systematic way for modelling and visualising market power in liberalised electricity markets. The paper first introduces a new index termed the "Nodal Market Power" index, the NMP index. The NMP index is calculated based on the concept of "social welfare" in economics and the game theory in applied mathematics. The oligopoly electricity market is modelled through a non-cooperative game and the solution concept of the Nash equilibrium. The solution concept of Nash equilibrium is reformulated as an optimisation problem. To tackle the multiple Nash equilibria problem, the worst Nash equilibrium in terms of the social cost to the society is selected. Then after, the NMP index is calculated for each node of power system. A colour contour map is used for visualising the market power using the NMP index.

AB - This paper deals with a systematic way for modelling and visualising market power in liberalised electricity markets. The paper first introduces a new index termed the "Nodal Market Power" index, the NMP index. The NMP index is calculated based on the concept of "social welfare" in economics and the game theory in applied mathematics. The oligopoly electricity market is modelled through a non-cooperative game and the solution concept of the Nash equilibrium. The solution concept of Nash equilibrium is reformulated as an optimisation problem. To tackle the multiple Nash equilibria problem, the worst Nash equilibrium in terms of the social cost to the society is selected. Then after, the NMP index is calculated for each node of power system. A colour contour map is used for visualising the market power using the NMP index.

KW - Market power

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KW - Stackelberg-Worst nash equilibrium

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The nodal market power index (NMP Index) for modelling and visualising market power

Abstract

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Keywords

ASJC Scopus subject areas

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