Evaluating individual market power in electricity markets via agent-based simulation.

Bunn, Derek W.; Oliveira, Fernando S.

Abstract

We use agent-based simulation in a coordination game to analyse the possibility of market power abuse in a competitive electricity market. The context of this was a real application to the England and Wales electricity market as part of a Competition Commission Inquiry into whether two particular generators could profitably influence wholesale prices. The research contributions of this paper are both in the areas of market power and market design policy issues for electricity markets, and in the methodological use of large industry-wide evolutionary simulation models.

Citation

BUNN, D.W. and OLIVEIRA, F.S. 2003. Evaluating individual market power in electricity markets via agent-based simulation. Annals of operations research [online], 121(1-4), pages 57-77. Available from: https://doi.org/10.1023/A:1023399017816

• Journal Article Type: Article
• Acceptance Date: Jul 31, 2003
• Online Publication Date: Jul 31, 2003
• Publication Date: Jul 31, 2003
• Deposit Date: Oct 21, 2023
• Publicly Available Date: Nov 15, 2023
• Journal: Annals of operations research
• Print ISSN: 0254-5330
• Electronic ISSN: 1572-9338
• Publisher: Springer
• Peer Reviewed: Peer Reviewed
• Volume: 121
• Issue: 1-4
• Pages: 57-77
• DOI: https://doi.org/10.1023/A%3A1023399017816
• Keywords: Agent-based models; Game theory; Market modelling; Electricity market
• Public URL: https://rgu-repository.worktribe.com/output/2114838