Stochastic energy market equilibrium modeling with multiple agents
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Forfattere:
Brekke, K.A., R. Golombek, M. Kaut, S.A.C. Kittelsen, S.W. Wallace
År:
2017
Referanse:
Vol 134, 984-990Sammendrag (engelsk)
The energy markets are characterized by many agents simultaneously solving decision problems under uncertainty. It is argued that Monte Carlo simulations are not an adequate way to assess behavioral uncertainty; one should rather rely on stochastic modelling. Drawing on economics, decision theory and operations research, a simple guide on how to transform a deterministic energy market equilibrium model - where several agents simultaneously make decisions - into a stochastic equilibrium model is offered. With our approach, no programming of a stochastic solution algorithm is required.
Nøkkelord:
Uncertainty; Stochastic equilibrium; Monte Carlo; Energy modeling
JEL:
C63; C68; D58; D81; Q28; Q40; Q54
Prosjekt info:
Oppdragsgiver: Norges ForskningsrådOppdragsgivers prosjektnr.: 228810
Frisch prosjekt: 3148 - Uncertainties in the European Energy Market: Modelling Approaches and policy issues
