This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Rational Actors in Balancing Markets: a Game-Theoretic Model and Results

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Thomas Rupp () (Institut für Volkswirtschaftslehre (Department of Economics), Technische Universität Darmstadt (Darmstadt University of Technology))
Abstract

Guided by game theory, we develop a model to explain behavioral equilibria under uncertainty and interaction with the spot market on balancing markets. We offer some insights for the general model and derive explicit solutions for a specific model in which the error distributions and pricing function are given. The most interesting conclusions are the unique existence of an equilibrium and that no participant acts contrary to the aggregate market (either all buy or sell power) and all strategies are, normalized, equal (which is rather counter-intuitive). Furthermore, the aggregate behavior is a stochastic process varying around its own variance.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.bwl.tu-darmstadt.de/vwl/forsch/veroeff/papers/ddpie_171.pdf
Our checks indicate that this address may not be valid because: 404 Not Found (http://www.bwl.tu-darmstadt.de/vwl/forsch/veroeff/papers/ddpie_171.pdf [301 Moved Permanently]--> http://www.wi.tu-darmstadt.de/vwl/forsch/veroeff/papers/ddpie_171.pdf). If this is indeed the case, please notify (Andreas Röthig)
File Format: application/pdf
File Function: Revised version
Download Restriction: no

Publisher Info
Paper provided by Institut für Volkswirtschaftslehre (Department of Economics), Technische Universität Darmstadt (Darmstadt University of Technology) in its series Darmstadt Discussion Papers in Economics with number 171.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 21 pages
Date of creation: May 2006
Date of revision:
Handle: RePEc:tud:ddpiec:171

Contact details of provider:
Postal: Hochschulstr. 1, 64289 Darmstadt
Web page: http://www.bwl.tu-darmstadt.de/vwl/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Andreas Röthig).

Related research
Keywords: game theory; nash equilibrium; regulated energy market; balancing power market;

Find related papers by JEL classification:
C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply
D40 - Microeconomics - - Market Structure and Pricing - - - General

This paper has been announced in the following NEP Reports:

Statistics
Access and download statistics

Did you know? IDEAS also computes impact factors for journals and working paper series.

This page was last updated on 2010-1-6.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.