peak-load pricing

A Tractable Multi-Leader Multi-Follower Peak-Load-Pricing Model with Strategic Interaction

  • Veronika Grimm
  • Lars Schewe
  • Martin Schmidt
  • Daniel Nowak
  • Alexandra Schwartz
  • Gregor Zöttl
    • Categories Applications - OR and Management Sciences, Game Theory, Global Optimization Tags , , ,

    While single-level Nash equilibrium problems are quite well understood nowadays, less is known about multi-leader multi-follower games. However, these have important applications, e.g., in the analysis of electricity and gas markets, where often a limited number of firms interacts on various subsequent markets. In this paper, we consider a special class of two-level multi-leader multi-follower … Read more

    Uniqueness of Market Equilibrium on a Network: A Peak-Load Pricing Approach

  • Veronika Grimm
  • Lars Schewe
  • Martin Schmidt
  • Gregor Zöttl
    • Categories Convex Optimization, Finance and Economics, Network Optimization Tags , , ,

    In this paper we establish conditions under which uniqueness of market equilibrium is obtained in a setup where prior to trading of electricity, transmission capacities between different market regions are fixed. In our setup, firms facing fluctuating demand decide on the size and location of production facilities. They make production decisions constrained by the invested … Read more