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Nash equilibrium in strategic bidding: A binary expansion approach

Publication ,  Journal Article
Barroso, LA; Carneiro, RD; Granville, S; Pereira, MV; Fampa, MHC
Published in: IEEE Transactions on Power Systems
May 1, 2006

This paper presents a mixed integer linear programming solution approach for the equilibrium problem with equilibrium constraints (EPEC) problem of finding the Nash equilibrium (NE) in strategic bidding in short-term electricity markets. A binary expansion (BE) scheme is used to transform the nonlinear, nonconvex, NE problem into a mixed integer linear problem (MILP), which can be solved by commercially available computational systems. The BE scheme can be applicable to Cournot, Bertrand, or joint price/quantity bidding models. The approach is illustrated in case studies with configurations derived from the 95-GW Brazilian system, including unit-commitment decisions to the price-maker agents. © 2006 IEEE.

Duke Scholars

Published In

IEEE Transactions on Power Systems

DOI

ISSN

0885-8950

Publication Date

May 1, 2006

Volume

21

Issue

2

Start / End Page

629 / 638

Related Subject Headings

  • Energy
  • 4008 Electrical engineering
  • 0906 Electrical and Electronic Engineering
 

Citation

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Barroso, L. A., Carneiro, R. D., Granville, S., Pereira, M. V., & Fampa, M. H. C. (2006). Nash equilibrium in strategic bidding: A binary expansion approach. IEEE Transactions on Power Systems, 21(2), 629–638. https://doi.org/10.1109/TPWRS.2006.873127
Barroso, L. A., R. D. Carneiro, S. Granville, M. V. Pereira, and M. H. C. Fampa. “Nash equilibrium in strategic bidding: A binary expansion approach.” IEEE Transactions on Power Systems 21, no. 2 (May 1, 2006): 629–38. https://doi.org/10.1109/TPWRS.2006.873127.
Barroso LA, Carneiro RD, Granville S, Pereira MV, Fampa MHC. Nash equilibrium in strategic bidding: A binary expansion approach. IEEE Transactions on Power Systems. 2006 May 1;21(2):629–38.
Barroso, L. A., et al. “Nash equilibrium in strategic bidding: A binary expansion approach.” IEEE Transactions on Power Systems, vol. 21, no. 2, May 2006, pp. 629–38. Scopus, doi:10.1109/TPWRS.2006.873127.
Barroso LA, Carneiro RD, Granville S, Pereira MV, Fampa MHC. Nash equilibrium in strategic bidding: A binary expansion approach. IEEE Transactions on Power Systems. 2006 May 1;21(2):629–638.

Published In

IEEE Transactions on Power Systems

DOI

ISSN

0885-8950

Publication Date

May 1, 2006

Volume

21

Issue

2

Start / End Page

629 / 638

Related Subject Headings

  • Energy
  • 4008 Electrical engineering
  • 0906 Electrical and Electronic Engineering