Externalities in the games over electrical power transmission networks
AbstractAn electrical transmission network consists of producers, consumers and the power lines connecting them. We build an ideal (lossless) DC load flow model as a cooperative game over a graph with the producers and consumers located at the nodes, each described by a maximum supply or desired demand and the power lines represented by the edges, each with a given power transmission capacity and admittance value describing its ability to transmit electricity. Today's transmission networks are highly interconnected, but organisationally partitioned into several subnetworks, the so-called balancing groups with balanced production and consumption. We study the game of balancing group formation and show that the game contains widespread externalities that can be both negative and positive. We study the stability of the transportation network using the recursive core. While the game is clearly cohesive, we demonstrate that it is not necessarily superadditive. We argue that subadditivity may be a barrier to achieve full cooperation. Finally the model is extended to allow for the extension of the underlying transmission network.
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Bibliographic InfoPaper provided by Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences in its series IEHAS Discussion Papers with number 1125.
Length: 28 pages
Date of creation: May 2011
Date of revision:
Energy transmission networks; Cooperative game theory; Partition function form games; Externalities;
Other versions of this item:
- László Á. Kóczy & Dávid Csercsik, 2011. "Externalities in the games over electrical power transmission networks," Working Paper Series 1103, Óbuda University, Keleti Faculty of Business and Management.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-27 (All new papers)
- NEP-ENE-2011-07-27 (Energy Economics)
- NEP-GTH-2011-07-27 (Game Theory)
- NEP-NET-2011-07-27 (Network Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Nem minden hÃ¡lÃ³zat szuper (lehet szubadditÃv is)
by KÃ³czy LÃ¡szlÃ³ in Kóczy játékelmélet blogja on 2011-05-30 13:18:00
- David Csercsik, 2013. "Competition and cooperation in a PFF game theoretic model of electrical energy trade," IEHAS Discussion Papers 1310, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
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