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 | |
| Publication status | Published - 2010 |
| Event | IEEE PES General Meeting, PES 2010 - Minneapolis, MN, United States Duration: Jul 25 2010 → Jul 29 2010 |
Other
| Other | IEEE PES General Meeting, PES 2010 |
|---|---|
| Country | United States |
| City | Minneapolis, MN |
| Period | 7/25/10 → 7/29/10 |
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Keywords
- Market power
- Nodal market power index
- Stackelberg-Worst nash equilibrium
ASJC Scopus subject areas
- Energy Engineering and Power Technology
Cite this
The nodal market power index (NMP Index) for modelling and visualising market power. / Hesamzadeh, M. R.; Biggar, D. R.; Hosseinzadeh, N.; Wolfs, P. J.
IEEE PES General Meeting, PES 2010. 2010. 5590137.Research output: Chapter in Book/Report/Conference proceeding › Conference contribution
}
TY - GEN
T1 - The nodal market power index (NMP Index) for modelling and visualising market power
AU - Hesamzadeh, M. R.
AU - Biggar, D. R.
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
KW - Nodal market power index
KW - Stackelberg-Worst nash equilibrium
UR - http://www.scopus.com/inward/record.url?scp=78649620150&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=78649620150&partnerID=8YFLogxK
U2 - 10.1109/PES.2010.5590137
DO - 10.1109/PES.2010.5590137
M3 - Conference contribution
AN - SCOPUS:78649620150
SN - 9781424483570
BT - IEEE PES General Meeting, PES 2010
ER -