Learning the demand function in oligopoly game for electric power bidding market

Abstract

Demand function is partially known by all producers in electric power market, which is a important factor for power producers to choose their optimal bidding strategy. This paper presents a dynamic learning model, based on the discrepancy between the expected price of power producers and the price they actually observe, which has a unique steady state, where any subjective demand function coincides with the true demand function. In the particular case of a duopoly power producer, an exact delimitation of the stability region in the parameters' space is given, and the bifurcation, chaos attractor and the control of chaos applied delayed feedback control method, are analysed with the help of numerical simulations.