An Agent-based Optimal Bidding Function

Oh, Hyungseon | Thomas, Robert J. | Two-sided Markets for Energy
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HyungSeon Oh, Robert J. Thomas
Proceedings of the 39th Hawaii International Conference on System Sciences, p. 242c, Jan 4-7, 2006, Koloa, Kauai.

Problems such as price volatility have been observed in electric power markets. Demand-side participation is often offered as a potential solution by promising to increase market efficiency when hockey-stick type offer curves are present. However, individual endconsumer will surely value electricity differently, which makes demand-side participation as a group and at a bus difficult. In this paper demand is categorized into two groups: one that highly values reliability and the other that does not. The two types are modeled separately and a new optimal bidding function is developed and tested based on this model.