Abstract
The method of experimental economics is applied to research of oligopolistic electricity markets. The principles of economic experiment, experimental design and procedure with an oligopolistic model of electricity markets are introduced. A set of experiments are conducted on an experimental oligopolistic markets with three GENCOs and the experimental results are analyzed with strict statistics approaches. The experimental results show that the market competition will converge to the results between perfect competition equilibrium and Nash equilibrium in oligopolistic electricity markets with asymmetric production cost functions and repeated play among the GENCOs. The decision support tools of GENCOs have significant influences on experimental results. The markets converge to static Cournot-Nash equilibrium when the bounded-rational subjects repeatedly play, equipped with the tools that can give best response strategies. The experimental method provides a complement to the theoretical research and has much superiority in modeling realistic electricity markets. (6 pages)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
