Multi-level Market Research Articles

Strategic behavior in TSO-DSO coordinated flexibility markets: A Nash equilibrium and efficiency analysis

This paper investigates the way in which the design of a TSO-DSO coordinated flexibility market can enable strategic behavior by flexibility service providers (FSPs). Multiple flexibility market models are considered for the procurement of flexibility services by transmission and distribution system operators, namely: a common (joint) market, a fragmented market, and a sequential multi-level market. Considering these market models, three non-cooperative games are introduced to investigate the strategic bidding and interaction between FSPs therein. Detailed conclusions are then drawn on the existence and uniqueness of Nash Equilibria (NEs) in the developed games, including derivations of closed-form expressions of the resulting NEs and corresponding price-of-anarchy, capturing the FSPs’ strategic bidding impact on the markets’ efficiency. The analysis considers – first in a duopoly setting, then with multiple players – three different use cases representing when: (1) a sufficient flexible capacity exists (sufficient flexibility offered from the FSPs and adequate interconnection/grid capacity between systems); (2) participants have a scarce flexibility capacity; and (3) a restrictive interface capacity exists between the systems. A case study considering an interconnected transmission–distribution system and multiple FSPs corroborates the analytical findings. The obtained results show that market participants have incentives to set bid prices greater than their marginal costs, thus decreasing the markets’ efficiency. This aspect is shown to be more pronounced when the available flexible capacity is limited, a restrictive line limit is present, or when the market is fragmented, thus supporting the need for additional network investments and the creation of joint flexibility market formats.

Capacity Allocation Method of Pumped-Storage Power Station for Multi-Level Market in New Power System

With the development of the electricity spot market, pumped-storage power stations are faced with the problem of realizing flexible adjustment capabilities and limited profit margins under the current two-part electricity price system. At the same time, the penetration rate of new energy has increased. Its uncertainty has brought great pressure to the operation of the power system. The ramp market and its market mechanism have emerged as the times require. To this end, this article proposes a bidding strategy for pumped-storage power stations to participate in multi-level markets such as the ramp market. Considering the demand calculation of ramping services, a two-layer model of pumped storage’s participation in multiple markets is constructed. The upper level makes trading decisions with the goal of maximizing pumped-storage revenue; the lower level aims to minimize the total social cost and jointly clears the primary and auxiliary markets. The income from pumped storage participating in the main energy and ramp-up auxiliary markets at the same time is significantly higher than the income from the two-part electricity price system. Its flexible adjustment ability can be quantified, reducing dependence on capacity electricity charges and providing a theoretical reference for cost recovery and profitability of future pumped-storage power stations.

The Choice of Backdoor-liked Listing on the New Third Board Company

Since the establishment of the new three board, China's multi-level market is increasingly perfect. Contemporarily, some companies in the Board prefer to be acquired by listed companies, so as to access the A-share market, which has better capital liquidity. Even at the expense of losing ownership of a major shareholder. The listing method is known as the ‘backdoor-liked listing’. In this text, through the case of Monarch Sanitary Ware's acquisition of Oceano, insight into the motivation of ‘backdoor-liked listing’, the difference between ‘back door listing’ and ‘backdoor-liked listing’, as well as the changes in enterprise value, acquisitions and related economic insights after merger. Based on the analysis, the main reason for enterprises to choose ‘back door listing’ is attributed to the stringent listing conditions, long time-consuming and high cost of IPO, and recognition of ‘back door listing’ as equivalent to IPO. Based on the two-stage corporate growth model of FCFF, the value of enterprises after M&A has a greater increase. In addition, after M&A, the scale of enterprise financing is expanded, and the synergistic effect is increased. However, ‘back door listing’ lowers the entry threshold for listing by bypassing the conditions for determining ‘backdoor-liked listing’ and increases the risk of poor-quality assets entering the listed company. Hence, market regulation should strengthen the audit of ‘backdoor-liked listing’ transfers by focusing on the substance of the transaction.

Grid Impact Aware TSO-DSO Market Models for Flexibility Procurement: Coordination, Pricing Efficiency, and Information Sharing

This paper proposes five market models for the procurement of flexibility by transmission (TSO) and distribution system operators (DSOs), based on several TSO-DSO coordination schemes, including a disjoint distribution, disjoint transmission, common, fragmented, and multi-level market. The properties of these models are then analyzed. In particular, the common market is first proven to be more efficient than the other market models. Then, different methods are proposed to adequately price TSO/DSO interface flows, when procuring cross-grid flexibility. It is then shown that, when interface flows are optimally priced, the fragmented and multi-level market solutions converge to those of the common market, reaching optimal efficiency. To prevent the need for any network information sharing among system operators in the different coordination schemes, decomposition methods based on bi-level programming and the alternating direction method of multipliers (ADMM) are proposed. A developed case study, considering an interconnected transmission-distribution system, corroborates the mathematical findings by highlighting the greater efficiency of the common market, the effect of adequate interface pricing on reducing procurement costs, and the capability of the decomposition methods to reach optimal market solutions with limited information exchange.

Design and evaluation of a multi-level reactive power market

The shift from conventional power plants on transmission level to distributed energy resources in the distribution grids requires procedures to enable efficient and economic reactive power exchange across different voltage levels. In this paper, we propose a multi-level reactive power market that enables reactive power provision from distributed energy resources to higher voltage levels. Each grid operator operates a local reactive power market and offers local reactive power potential, as an intermediary, to superordinate grid operators by passing on its aggregated cost curve and flexibility range. As a result, there is a low requirement of communication between the market participants and each grid operator is free to choose its local market rules as well as the optimization algorithm used. First results from a case study show that our decentralized market approach can realize an economically efficient multi-level reactive power provision that is close to a centrally computed optimal solution, without violating local grid constraints.

Global optimization for the multilevel European gas market system with nonlinear flow models on trees

The European gas market is implemented as an entry-exit system, which aims to decouple transport and trading of gas. It has been modeled in the literature as a multilevel problem, which contains a nonlinear flow model of gas physics. Besides the multilevel structure and the nonlinear flow model, the computation of so-called technical capacities is another major challenge. These lead to nonlinear adjustable robust constraints that are computationally intractable in general. We provide techniques to equivalently reformulate these nonlinear adjustable constraints as finitely many convex constraints including integer variables in the case that the underlying network is tree-shaped. We further derive additional combinatorial constraints that significantly speed up the solution process. Using our results, we can recast the multilevel model as a single-level nonconvex mixed-integer nonlinear problem, which we then solve on a real-world network, namely the Greek gas network, to global optimality. Overall, this is the first time that the considered multilevel entry-exit system can be solved for a real-world sized network and a nonlinear flow model.

Production of society as a device composed by non-market and multilevel market productions

Production of society as a device composed by non-market and multilevel market productions

Multilevel Marketing: Inner Workings, Socioeconomic Effects and the Islamic Juridical View

The intent of this article is to highlight the origins and development of multilevel marketing, its inner workings, and Islamic juridical views on its activities. One group of Muslim scholars permits it while others forbid it. The view forbidding it is the majority opinion. The juridical viewpoint forbidding multilevel marketing is more convincing than the view permitting it because of research-based evidence highlighting the reality of its inner workings, its socioeconomic harms and stronger juristic arguments opposing it. The inner workings of multilevel market reveal why the majority opinion forbids this so-called business model. This article aims to introduce a sharia-compliant version of the multilevel marketing model which may align with the Islamic perspective.

A Quantitative Analysis of Value-at-Risk based on Two-factor Pricing Model and GARCH Model

Value-at-risk has become the main instrument for the measurement and management of financial risks. With innovative construction of multi-level capital market system and gradual improvement of functions of financial system in China, financial risks demonstrate some new uncertainties. With regard to quantitative analysis and the management of risks in Chinese financial market, adoption of some methods for quantification of value-at-risk is of greatly importance in the fields of both theory and practice. The constant improvement in research of theory and practice concerning financial development gives birth to all kinds of new instruments for measurement and management of financial risks, among which value-at-risk is a common new instrument applied in measurement and management of modern finance. In this paper, an empirical analysis is conducted on quantification of financial value-at-risk based on Two-factor pricing model and GARCH model.

Transmission Effectiveness of Resource Allocation Efficiency in Multitier Capital Market System

With the continuous development of the capital market, in order to study the effectiveness of the multilevel capital market, the operation status of the multilevel capital market is used as the research object, and the Pareto analysis paradigm is used to study the effectiveness of the transmission mechanism of the resources allocation efficiency of the multilevel capital market. Research has shown that Pareto analysis model can be used to analyze the multilevel capital markets. Investors’ irrationality and lack of professionalism further aggravate market volatility. Research on resource allocation of multilevel capital market systems and the effectiveness of the transmission mechanism has certain theoretical significance and practical value.

Research on multiple bubbles in China's multi-level stock market.

Financial bubbles have always been a topic of long-term concern for economists. Understanding bubble phenomenon and dating the period of bubbles in real time can provide an early warning diagnosis for financial bubbles and help regulatory authorities to control it and maintain market order. The generalized sup ADF (GSADF) and backward sup ADF (BSADF) tests with flexible window width can effectively detect and date periodically collapsing bubbles in real time. Based on the financial present value model, this paper applies right-tail recursive ADF test to test multiple bubbles in China's multi-level stock market. Unlike the other researches in China, the ratios of the real stock prices' natural logarithm to the real dividends' natural logarithm are used for our testing instead of stock price index. Empirical results show that there are 8 bubbles in the Main-Board Market, 6 bubbles in the Small and Medium Enterprises Board (SMEs), and 4 bubbles in the Growth Enterprise Market (GEM). These bubbles are liquidity-driven and presuppose a loose credit cycle, with the exception of bubbles in 2014-2015. The frequent emergence of bubbles in a short time indicates that China's stock market is still emerging market. In addition, frequent fluctuations imply there is a serious "herd effect" and a lack of monitoring mechanism for bubble risk. This study not only enrich the real-time dynamic research on periodical bubbles of China's stock market, but also provide an empirical reference for investors' investment choices, financial decisions of listed companies and warning mechanism of regulatory authorities.

Airport capacity extension, fleet investment, and optimal aircraft scheduling in a multilevel market model: quantifying the costs of imperfect markets

We present a market model of a liberalized aviation market with independent decision makers. The model consists of a hierarchical, trilevel optimization problem where perfectly competitive budget-constrained airports decide (in the first level) on optimal runway capacity extensions and airport charges by anticipating long-term fleet investment and medium-term aircraft scheduling decisions taken by a set of imperfectly competitive airlines (in the second level). Both airports and airlines anticipate the short-term outcome of a perfectly competitive ticket market (in the third level). We compare our trilevel model to an integrated single-level (benchmark) model in which investments, scheduling, and market-clearing decisions are simultaneously taken by a welfare-maximizing social planner. Using a simple six airports example from the literature, we illustrate the inefficiency of long-run investments in both runway capacity and aircraft fleet which may be observed in aviation markets with imperfectly competitive airlines.

Identifying Barriers to and Facilitators of Using a Mobile Fruit and Vegetable Market Intervention Delivered to Low-Income Housing Sites: A Concept Mapping Study.

Mobile fruit and vegetable (F&V) markets may be a promising strategy to improve F&V intake among low-income and racial/ethnic minority groups. However, challenges remain in terms of maximizing the reach and utilization of such markets. Therefore, this study identifies perceived barriers to and facilitators of utilizing a mobile F&V market among residents who lived in low-income housing that received the markets. Specifically, this article reports the results of the follow-up acceptability study of the "Live Well, Viva Bien" (LWVB) intervention. We conducted concept mapping with residents in housing communities that received the Fresh to You (FTY) markets. Participants generated, sorted, and rated statements concerning barriers to and facilitators of market use. We compared the rating data by residents' level of market utilization and created a map representing how statements clustered into conceptual themes. We retained 66 unique participant-generated statements. Eight thematic clusters emerged; four pertained to barriers: financial/promotion, produce-related, scheduling/knowledge, and logistic/awareness barriers, and four related to facilitators: produce/staffing, promotion, accessibility, and multilevel market facilitators. There was a strong correlation in ratings between participants who more frequently versus less frequently shopped at the markets (r = 0.94). Participants identified financial barriers, market promotion, ease of market accessibility, produce variety and quality, and staffing as key factors influencing FTY market use. This study highlights the importance of identifying the perceived barriers to and facilitators of mobile F&V market use among target populations to inform future efforts to scale up such approaches.

Multi-Level Market Transaction Optimization Model for Electricity Sales Companies with Energy Storage Plant

Due to market price uncertainty and volatility, electricity sales companies today are facing greater risks in regard to the day-ahead market and the real-time market. Along with introducing the Time of Use (TOU) price for the customer as a type of balancing resource to avoid market risk, electricity sales companies should adopt the market risk-aversion method to reduce the high cost of ancillary services in the real-time market by using multi-level market transactions, as well as to provide a reference for the profits of power companies. In this paper, we establish a non-linear mathematical model based on stochastic programming by using conditional value-at-risk (CVaR) to measure transaction strategy risk. For the market price and consumer electricity load as the uncertain factors of multi-level market transactions of electricity sales companies, the optimal objective was to maximize the revenue of electricity sales companies and minimize the peak-valley differences in the system, which is solved by using mixed-integer linear programming (MILP). Finally, we provide an example to analyze the effect of the fluctuation degree of customer load and market price on the profit of electricity sales companies under different confidence coefficients.

Development of Reward Mechanism for Proxy Marketers Engaged in E-Commerce Platforms

A reward model/mechanism for proxy marketer-based e-commerce/e-shopping system was developed in this work. The system comprised of two modules, the shopping module which has an online shop and virtual warehouse; and the reward module. The online shop and virtual warehouse are used to manage the products on the e-commerce system, the reward mechanism is used to manage the reward paid to the proxy marketer. Proxy marketers have been introduced into online shopping to extend their market reach and increase their market share. The proxy marketers are organized in a unilevel multilevel market structure. The work offers three types of rewards: transaction reward which is paid to three generations from the proxy marketer who made the transaction; trust reward which is based on the trustworthiness rating of proxy marketer for a transaction; and turnover reward which is paid for transaction that is up to the amount stipulated for the reward. The various levels of reward were designed to total fifty percent of the profit made per transaction in order to attain sustainability of the network. The work proves that with a sustainable reward mechanism, proxy marketers can be incorporated into an e-commerce platform in a way that betters the profitability of such e-commerce platforms as compared to standalone e-shopping ones.

Development of Reward Mechanism for Proxy Marketers Engaged in E-Commerce Platforms

A reward model/mechanism for proxy marketer-based e-commerce/e-shopping system was developed in this work. The system comprised of two modules, the shopping module which has an online shop and virtual warehouse; and the reward module. The online shop and virtual warehouse are used to manage the products on the e-commerce system, the reward mechanism is used to manage the reward paid to the proxy marketer. Proxy marketers have been introduced into online shopping to extend their market reach and increase their market share. The proxy marketers are organized in a unilevel multilevel market structure. The work offers three types of rewards: transaction reward which is paid to three generations from the proxy marketer who made the transaction; trust reward which is based on the trustworthiness rating of proxy marketer for a transaction; and turnover reward which is paid for transaction that is up to the amount stipulated for the reward. The various levels of reward were designed to total fifty percent of the profit made per transaction in order to attain sustainability of the network. The work proves that with a sustainable reward mechanism, proxy marketers can be incorporated into an e-commerce platform in a way that betters the profitability of such e-commerce platforms as compared to standalone e-shopping ones.

The regulation of the financial sector in China: a tale of two governments

ABSTRACTThis article discusses an important regulatory phenomenon in China’s securities markets: regulation by local governments. Multi-level financial market regulation is an intrinsic part of the Chinese financial regulatory system, and the article looks at the nature and dynamics of the role played by local governments, and interactions between the central government and local governments. The article commences with a review of the degrees of economic decentralisation and political centralisation evident in China. The article then discusses the struggle between local governments and the central government that arise from competing objectives. After reviewing regulatory powers of local governments in general, and their powers to regulate credit companies, financing guarantor companies, private capital management companies, and regional markets, the article examines the competition between local governments for financial resources and its implications.

A case study of the key factors and mechanism associated with mining site pollution control based on an E-platform management system

An E-platform framework method of mine site pollution control was proposed and tested with big-data of survey system, technology system, and expert decision system. The survey system was used to detect multiple factors and control indexes of the mining area. Key controlling factor and ecological risk index of pressure sensitive model was used to evaluate the pollution determining factors. The ecological footprint was applied to evaluate sustainable development capability. The technical system serves the entire organization and production. An alarming alert is activated when the combination pressure sensitive index is above the threshold value. The expert decision system provides legal basis and decision-making services. It can establish the relationship between metabolism and secondary market for recycling of resources. The resources will be re-allocated by turning on the physical, chemical, biological defensive methods correspondingly. Three sub-platform systems promote the virtuous cycle of multi-level market and the improvement of resource integration capability. The whole mining site was integrated at a new risk rank level for pollution control by big-data of E-platform framework. All progress and sub-systems links will be imported into the big-database of E-framework friendly. The real-time data can be shared by executable interface. The data structures, interfaces between subsystems, independence and systematic are well integrated.

The Research on Financial variables’ Influence on Net Foreign Assets

Based on the rapid development of the financial integration and the emergence of global imbalances, this paper takes 49 countries multinational panel data from 1980-2011 as research samples and the state net foreign assets as the research object. In the perspective of financial integration, in order to find out the effect of financial variables on the net foreign assets, we also introduce the financial development, financial structure and financial opening variables. Through research, we can conclude that financial integration and financial opening both supplement each other, the optimization of financial structure helps to improve a country's foreign net imbalance situation, and a country's financial structure can be optimized with the improvement of integration. So we believes that China should (1) increase the diversification of foreign exchange reserves and promote the internationalisation of the renminbi. (2) Improve domestic savings-investment mechanism, develop the multi-level financial market, and improve the efficiency of the financial system and the level of innovation. (3) Reform the system of capital controls and strengthen cooperation with emerging economies, thus improving our foreign net imbalance, and achieving a smooth transition of developing countries to developed countries.

An Exploratory Study on multi-level market in the Consumer’s view

An Exploratory Study on multi-level market in the Consumer’s view