Dynamic Testing of Wholesale Power Market Designs: An Open-Source Agent-Based Framework

Junjie Sun and Leigh Tesfatsion ()

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: In April 2003 the U.S. Federal Energy Regulatory Commission proposed a complicated market design - the Wholesale Power Market Platform (WPMP) - for common adoption by all U.S. wholesale power markets. Versions of the WPMP have been implemented in New England, New York, the mid-Atlantic states, the Midwest, and the Southwest, and California. Strong opposition to the WPMP persists among some industry stakeholders, however, due largely to a perceived lack of adequate performance testing. This study reports on the model development and open-source implementation (in Java) of a computational wholesale power market organized in accordance with core WPMP features and operating over a realistically rendered transmission grid subject to congestion effects. The traders within this market model are strategic profit-seeking agents whose learning behaviors are based on data from human-subject experiments. Our key experimental focus is the complex interplay among structural conditions, market protocols, and learning behaviors in relation to short-term and longer-term market performance. Findings for a dynamic 5-node transmission grid test case are presented for concrete illustration. Annotated pointers to related work can be accessed here: http://www2.econ.iastate.edu/tesfatsi/AMESMarketHome.htm

JEL-codes: C6 D4 D6 L1 L3 L94 Q4 (search for similar items in EconPapers)
Date: 2006-07-26
New Economics Papers: this item is included in nep-cbe, nep-cmp, nep-com and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Computational Economics, October 2007, vol. 30 no. 3, pp. 291-327

Downloads: (external link)
http://www2.econ.iastate.edu/papers/paper_12649_06025.pdf (application/pdf)

Related works:
Journal Article: Dynamic Testing of Wholesale Power Market Designs: An Open-Source Agent-Based Framework (2007)
Working Paper: Dynamic Testing of Wholesale Power Market Designs: An Open-Source Agent-Based Framework (2007)
Working Paper: Dynamic Testing of Wholesale Power Market Designs: An Open-Source Agent-Based Framework (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:12649

Access Statistics for this paper

More papers in Staff General Research Papers Archive from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().