Development of an Analytical Framework for Strategic Bidding in Competitive Electricity Markets: Modeling and Policy Analysis

这一建议是工程师和经济学家在竞争激烈的电力行业领域合作努力的一个明确的例子。这种合作对于为这个行业开发必要的理解和计算机工具是必不可少的。更具体地说，该提案涉及一个将电力市场的博弈论方面与电力系统的操作/物理约束相结合的一般框架的发展。其目的是建立一个分析框架，用于研究可选择的市场机制的设计、功能和表现，同时考虑受系统独特物理约束的那些市场的博弈论方面。将开发并利用仿真工具来“说明各种市场设计、规则规范、监管政策和各种参与者的战略行为的性能”。在模型复杂性和研究多种解决方案策略之间进行了重要的权衡。与大多数经济研究不同，前者比后者更受欢迎，因为在目前的情况下，前者更现实，信息更丰富。

This proposal is a well-defined example of collaborative efforts between engineers and economists in the field of competitive electric power industry. This collaboration is essential for development of necessary understanding and computer tools for this industry. More specifically, the proposal deals with a development of a general framework that integrates game-theoretic aspects of power markets with the operational/physical constraint of electric power systems. The object is to develop an analytical framework for studying the design, functioning and performance of alternative market mechanisms, considering the game theoretic aspects of those markets subject to the unique physical constraints of the system. Simulation tools will be developed and utilized to "illustrate the performance of various market designs, rule specifications, regulatory policies, and strategic behavior of the various players.A significant tradeoff is addressed, that between model complexity and study of multifarious solution strategies. Unlike most economic studies, the former is preferred to the latter, as being more realistic and informative in the present context.