Electricity Market Equilibrium Under Information Asymmetry

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

We study a competitive electricity market equilibrium with two trading stages, day-ahead and real-time. The welfare of each market agent is exposed to uncertainty (here from renewable energy production), while agent information on the probability distribution of this uncertainty is not identical at the day-ahead stage. We show a high sensitivity of the equilibrium solution to the level of information asymmetry and demonstrate economic, operational, and computational value for the system stemming from potential information sharing.

Original languageEnglish
JournalOperations Research Letters
Volume47
Issue number6
Pages (from-to)521-526
ISSN0167-6377
DOIs
Publication statusPublished - 2019

Keywords

  • Asymmetry of information
  • Distributed optimization
  • Electricity market
  • Equilibrium
  • Existence and uniqueness
  • Uncertainty

Cite this

@article{8c19fa7585354bcf94aa0e386a00ded3,
title = "Electricity Market Equilibrium Under Information Asymmetry",
abstract = "We study a competitive electricity market equilibrium with two trading stages, day-ahead and real-time. The welfare of each market agent is exposed to uncertainty (here from renewable energy production), while agent information on the probability distribution of this uncertainty is not identical at the day-ahead stage. We show a high sensitivity of the equilibrium solution to the level of information asymmetry and demonstrate economic, operational, and computational value for the system stemming from potential information sharing.",
keywords = "Asymmetry of information, Distributed optimization, Electricity market, Equilibrium, Existence and uniqueness, Uncertainty",
author = "Vladimir Dvorkin and Jalal Kazempour and Pierre Pinson",
year = "2019",
doi = "10.1016/j.orl.2019.09.005",
language = "English",
volume = "47",
pages = "521--526",
journal = "Operations Research Letters",
issn = "0167-6377",
publisher = "Elsevier",
number = "6",

}

Electricity Market Equilibrium Under Information Asymmetry. / Dvorkin, Vladimir; Kazempour, Jalal; Pinson, Pierre.

In: Operations Research Letters, Vol. 47, No. 6, 2019, p. 521-526.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - Electricity Market Equilibrium Under Information Asymmetry

AU - Dvorkin, Vladimir

AU - Kazempour, Jalal

AU - Pinson, Pierre

PY - 2019

Y1 - 2019

N2 - We study a competitive electricity market equilibrium with two trading stages, day-ahead and real-time. The welfare of each market agent is exposed to uncertainty (here from renewable energy production), while agent information on the probability distribution of this uncertainty is not identical at the day-ahead stage. We show a high sensitivity of the equilibrium solution to the level of information asymmetry and demonstrate economic, operational, and computational value for the system stemming from potential information sharing.

AB - We study a competitive electricity market equilibrium with two trading stages, day-ahead and real-time. The welfare of each market agent is exposed to uncertainty (here from renewable energy production), while agent information on the probability distribution of this uncertainty is not identical at the day-ahead stage. We show a high sensitivity of the equilibrium solution to the level of information asymmetry and demonstrate economic, operational, and computational value for the system stemming from potential information sharing.

KW - Asymmetry of information

KW - Distributed optimization

KW - Electricity market

KW - Equilibrium

KW - Existence and uniqueness

KW - Uncertainty

U2 - 10.1016/j.orl.2019.09.005

DO - 10.1016/j.orl.2019.09.005

M3 - Journal article

VL - 47

SP - 521

EP - 526

JO - Operations Research Letters

JF - Operations Research Letters

SN - 0167-6377

IS - 6

ER -