Two-Sided Tacit Collusion: Another Step towards the Role of Demand-Side
In the context of agent-based simulation framework of collusion, this paper seeks for two-sided tacit collusion among supply-side and demand-side participants in a constrained network and impacts of this collusion on the market outcomes. Tacit collusion frequently occurs in electricity markets due t...
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| Format: | Article |
| Language: | English |
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MDPI AG
2017-12-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/10/12/2045 |
| _version_ | 1828395669513043968 |
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| author | Mehdi Jabbari Zideh Seyed Saeid Mohtavipour |
| author_facet | Mehdi Jabbari Zideh Seyed Saeid Mohtavipour |
| author_sort | Mehdi Jabbari Zideh |
| collection | DOAJ |
| description | In the context of agent-based simulation framework of collusion, this paper seeks for two-sided tacit collusion among supply-side and demand-side participants in a constrained network and impacts of this collusion on the market outcomes. Tacit collusion frequently occurs in electricity markets due to strategic behavior of market participants arose from daily repetition of energy auctions. To attain detailed analysis of tacit collusion, state-action-reward-state-action (SARSA) learning algorithm and the standard Boltzmann exploration strategy based on the Q-value are used to model market participants’ behavior. A model is presented that integrates exploration and exploitation into a single framework, with the purpose of tuning exploration in the algorithm. In order to appraise the feasibility of collusion, a theoretical study on a three-node power system with three scenarios is depicted considering three Gencos and two Discos which proves the formation of two-sided tacit collusion between Genco and Disco. Simulation results show different collusive strategies of participants and how parameters of the algorithm impact on simulation outcomes. It is also shown that congestion on transmission line has a significant influence on behavior of market participants. |
| first_indexed | 2024-12-10T08:17:16Z |
| format | Article |
| id | doaj.art-7ff8c9c3a6fe4414948988aa47f29e04 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-12-10T08:17:16Z |
| publishDate | 2017-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-7ff8c9c3a6fe4414948988aa47f29e042022-12-22T01:56:26ZengMDPI AGEnergies1996-10732017-12-011012204510.3390/en10122045en10122045Two-Sided Tacit Collusion: Another Step towards the Role of Demand-SideMehdi Jabbari Zideh0Seyed Saeid Mohtavipour1Faculty of Engineering, University of Guilan, Rasht 43514, IranFaculty of Engineering, University of Guilan, Rasht 43514, IranIn the context of agent-based simulation framework of collusion, this paper seeks for two-sided tacit collusion among supply-side and demand-side participants in a constrained network and impacts of this collusion on the market outcomes. Tacit collusion frequently occurs in electricity markets due to strategic behavior of market participants arose from daily repetition of energy auctions. To attain detailed analysis of tacit collusion, state-action-reward-state-action (SARSA) learning algorithm and the standard Boltzmann exploration strategy based on the Q-value are used to model market participants’ behavior. A model is presented that integrates exploration and exploitation into a single framework, with the purpose of tuning exploration in the algorithm. In order to appraise the feasibility of collusion, a theoretical study on a three-node power system with three scenarios is depicted considering three Gencos and two Discos which proves the formation of two-sided tacit collusion between Genco and Disco. Simulation results show different collusive strategies of participants and how parameters of the algorithm impact on simulation outcomes. It is also shown that congestion on transmission line has a significant influence on behavior of market participants.https://www.mdpi.com/1996-1073/10/12/2045agent-based simulationtwo-sided tacit collusionSARSA learning algorithmcongestion |
| spellingShingle | Mehdi Jabbari Zideh Seyed Saeid Mohtavipour Two-Sided Tacit Collusion: Another Step towards the Role of Demand-Side Energies agent-based simulation two-sided tacit collusion SARSA learning algorithm congestion |
| title | Two-Sided Tacit Collusion: Another Step towards the Role of Demand-Side |
| title_full | Two-Sided Tacit Collusion: Another Step towards the Role of Demand-Side |
| title_fullStr | Two-Sided Tacit Collusion: Another Step towards the Role of Demand-Side |
| title_full_unstemmed | Two-Sided Tacit Collusion: Another Step towards the Role of Demand-Side |
| title_short | Two-Sided Tacit Collusion: Another Step towards the Role of Demand-Side |
| title_sort | two sided tacit collusion another step towards the role of demand side |
| topic | agent-based simulation two-sided tacit collusion SARSA learning algorithm congestion |
| url | https://www.mdpi.com/1996-1073/10/12/2045 |
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