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An agent-based approach equipped with game theory: Strategic collaboration among learning agents during a dynamic market change in the California electricity crisis

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  • Sueyoshi, Toshiyuki

Abstract

An agent-based approach is a numerical (computer-intensive) method to explore the complex characteristics and dynamics of microeconomics. Using the agent-based approach, this study investigates the learning speed of traders and their strategic collaboration in a dynamic market change of electricity. An example of such a market change can be found in the California electricity crisis (2000-2001). This study incorporates the concept of partial reinforcement learning into trading agents and finds that they have two learning components: learning from a dynamic market change and learning from collaboration with other traders. The learning speed of traders becomes slow when a large fluctuation occurs in the power exchange market. The learning speed depends upon the type of traders, their learning capabilities and the fluctuation of market fundamentals. The degree of collaboration among traders gradually reduces during the electricity crisis. The strategic collaboration among traders is examined by a large simulator equipped with multiple learning capabilities.

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  • Sueyoshi, Toshiyuki, 2010. "An agent-based approach equipped with game theory: Strategic collaboration among learning agents during a dynamic market change in the California electricity crisis," Energy Economics, Elsevier, vol. 32(5), pages 1009-1024, September.
    • Handle: RePEc:eee:eneeco:v:32:y:2010:i:5:p:1009-1024
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    Cited by:

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    2. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "Returns to scale and damages to scale on U.S. fossil fuel power plants: Radial and non-radial approaches for DEA environmental assessment," Energy Economics, Elsevier, vol. 34(6), pages 2240-2259.
    3. Md. Sayed Iftekhar & John G. Tisdell, 2016. "An Agent Based Analysis of Combinatorial Bidding for Spatially Targeted Multi-Objective Environmental Programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 537-558, August.
    4. Sueyoshi, Toshiyuki & Goto, Mika, 2015. "Environmental assessment on coal-fired power plants in U.S. north-east region by DEA non-radial measurement," Energy Economics, Elsevier, vol. 50(C), pages 125-139.
    5. Young, David & Poletti, Stephen & Browne, Oliver, 2014. "Can agent-based models forecast spot prices in electricity markets? Evidence from the New Zealand electricity market," Energy Economics, Elsevier, vol. 45(C), pages 419-434.
    6. Goto, Hisanori & Goto, Mika & Sueyoshi, Toshiyuki, 2011. "Consumer choice on ecologically efficient water heaters: Marketing strategy and policy implications in Japan," Energy Economics, Elsevier, vol. 33(2), pages 195-208, March.
    7. Mier, Mathias & Siala, Kais & Govorukha, Kristina & Mayer, Philip, 2023. "Collaboration, decarbonization, and distributional effects," Applied Energy, Elsevier, vol. 341(C).
    8. Sueyoshi, Toshiyuki & Goto, Mika & Sugiyama, Manabu, 2013. "DEA window analysis for environmental assessment in a dynamic time shift: Performance assessment of U.S. coal-fired power plants," Energy Economics, Elsevier, vol. 40(C), pages 845-857.
    9. Sueyoshi, Toshiyuki & Wang, Derek, 2017. "Measuring scale efficiency and returns to scale on large commercial rooftop photovoltaic systems in California," Energy Economics, Elsevier, vol. 65(C), pages 389-398.
    10. Sueyoshi, Toshiyuki & Goto, Mika, 2014. "Photovoltaic power stations in Germany and the United States: A comparative study by data envelopment analysis," Energy Economics, Elsevier, vol. 42(C), pages 271-288.
    11. Shafie-khah, Miadreza & Parsa Moghaddam, Mohsen & Sheikh-El-Eslami, Mohamad Kazem & Rahmani-Andebili, Mehdi, 2012. "Modeling of interactions between market regulations and behavior of plug-in electric vehicle aggregators in a virtual power market environment," Energy, Elsevier, vol. 40(1), pages 139-150.
    12. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "Environmental assessment by DEA radial measurement: U.S. coal-fired power plants in ISO (Independent System Operator) and RTO (Regional Transmission Organization)," Energy Economics, Elsevier, vol. 34(3), pages 663-676.
    13. Sueyoshi, Toshiyuki, 2010. "An agent-based approach with collaboration among agents: Estimation of wholesale electricity price on PJM and artificial data generated by a mean reverting model," Energy Economics, Elsevier, vol. 32(5), pages 1025-1033, September.

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