 Uniqueness and multiplicity of market equilibria on DC power flow networksVanessa Krebs, Lars Schewe and Martin Schmidt European Journal of Operational Research, 2018, vol. 271, issue 1, 165-178 Abstract: We consider uniqueness and multiplicity of market equilibria in a short-run setup where traded quantities of electricity are transported through a capacitated network in which power flows have to satisfy the classical lossless DC approximation. The firms face fluctuating demand and decide on their production, which is constrained by given capacities. Today, uniqueness of such market outcomes are especially important in more complicated multilevel models for measuring market (in)efficiency. Thus, our findings are important prerequisites for such studies. We show that market equilibria are unique on tree networks under mild assumptions and we also present a priori conditions under which equilibria are unique on cycle networks. On general networks, uniqueness fails to hold and we present simple examples for which multiple equilibria exist. However, we prove different a posteriori criteria for the uniqueness of a given solution and thereby specify properties of unique solutions. Keywords: Networks; Market equilibria; Uniqueness; Multiplicity; DC power flow (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:271:y:2018:i:1:p:165-178 DOI: 10.1016/j.ejor.2018.05.016 Access Statistics for this article European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
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