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Infinite horizon hydroelectricity games

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  • Robles, Jack

Abstract

We present an infinite horizon game between a hydro power plant and a thermal power plant. The Markov perfect equilibrium is characterized and related to the closed loop equilibrium of a one year finite horizon game. We show that the infinite horizon and one year horizon models make predictions which are surprisingly similar. Essential differences in predictions are noted.

Suggested Citation

  • Robles, Jack, 2016. "Infinite horizon hydroelectricity games," Working Paper Series 19421, Victoria University of Wellington, School of Economics and Finance.
    • Handle: RePEc:vuw:vuwecf:19421
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    File URL: https://ir.wgtn.ac.nz/handle/123456789/19421
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    References listed on IDEAS

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