Abstract
This paper presents a methodology of finding Nash Equilibrium (NE) by using an agent-based approach. A game theoretic method to solve the NE is applicable under the assumption of complete information on the electricity market and the participants. In the real market, however, Generation Companies (Gencos) submit supply bids to the Market Operator (MO) with incomplete information. Agent-based approaches are more suitable for the electricity market with incomplete information than the microeconomic method. In this paper, the payoff matrices are used as key information for deciding strategic bids. In the process of repeated auction with incomplete information, each agent can calculate efficient partial payoff matrix by using the results after each auction. The Best Response (BR) technique is applied to the partially constructed payoff matrices for finding the NE. The simulation process is divided into three modes, first is a preliminary step of constructing the payoff matrices, second is a step of tracking the NEs, and the third is a step of applying to the varying load pattern. The simulation results show that this methodology is applicable to the electricity market with incomplete information.
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