A deterministic bounding procedure for the global optimization of a bi-level mixed-integer problem

Inês Soares, Maria João Alves and Carlos Henggeler Antunes

European Journal of Operational Research, 2021, vol. 291, issue 1, 52-66

Abstract: In this paper, a deterministic bounding procedure for the global optimization of a mixed-integer bi-level programming problem is proposed. The aim has been to develop an efficient algorithm to deal with a case study in the electricity retail market. In this problem, an electricity retailer wants to define a time-of-use tariff structure to maximize profits, but he has to take into account the consumers’ reaction by means of re-scheduling appliance operation to minimize costs. The problem has been formulated as a bi-level mixed-integer programming model.

Keywords: Global optimization; Bi-level optimization; Mixed-integer linear programming model; Pricing problem; Dynamic tariffs; Electricity retail market; Demand response (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:291:y:2021:i:1:p:52-66

DOI: 10.1016/j.ejor.2020.09.015

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