Probabilistic game approaches for network cost allocation

Rohit Bhakar (), V.s. Sriram, Narayana prasad Padhy and Hari om Gupta

MPRA Paper from University Library of Munich, Germany

Abstract: In a restructured power market, the network cost is to be allocated between multiple players utilizing the system in varying capacities. Cooperative game approaches based on Shapley value and Nucleolus provide stable models for embedded cost allocation of power networks. Varying network usage necessitates the introduction of probabilistic approaches to cooperative games. This paper proposes a variety of probabilistic cooperative game approaches. These have variably been modeled based upon the probability of existence of players, the probability of existence of coalitions, and the probability of players joining a particular coalition along with their joining in a particular sequence. Application of these approaches to power networks reflects the system usage in a more justified way. Consistent and stable results qualify the application of probabilistic cooperative game approaches for cost allocation of power networks.

Keywords: Cooperative games; embedded cost allocation; probabilistic games; transmission pricing (search for similar items in EconPapers)
JEL-codes: C7 (search for similar items in EconPapers)
Date: 2010-01-20
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Citations: View citations in EconPapers (8)

Published in IEEE Transactions on Power Systems 1.25(2010): pp. 51-58

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