An Agent-Based Computational Laboratory for Testing the Economic Reliability of Wholesale Power Market Designs
Junjie Sun and
Leigh Tesfatsion ()
Staff General Research Papers Archive from Iowa State University, Department of Economics
In April 2003 the U.S. Federal Energy Regulatory Commission (FERC) proposed the Wholesale Power Market Platform (WPMP) for common adoption by U.S. wholesale power markets. The WPMP is a complicated market design that has been adopted in some regions of the U.S. but resisted in others on the grounds that its reliability has not yet been sufficiently tested. This article reports on the development of an agent-based computational framework for exploring the economic reliability of the WPMP. The key issue under study is the extent to which the WPMP is capable of sustaining efficient, orderly, and fair market outcomes over time despite attempts by market participants to gain advantage through strategic pricing, capacity withholding, and/or induced transmission congestion. Related work can be accessed at: http://www2.econ.iastate.edu/tesfatsi/AMESMarketHome.htm
Keywords: wholesale power market; Agent-based test bed; market power; market efficiency (search for similar items in EconPapers)
JEL-codes: C6 D4 D6 L1 L2 Q4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp and nep-com
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Working Paper: An agent-based computational laboratory for testing the economic reliability of wholesale power market designs (2005)
Working Paper: An Agent-Based Computational Laboratory for Testing the Economic Reliability of Wholesale Power Market Designs (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:12388
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