Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

2007

Journal or Book Title

Computational Economics

Volume

30

Issue

3

First Page or Article ID Number

291

Last Page

327

DOI

10.1007/s10614-007-9095-1

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 US wholesale power markets. Versions of the WPMP have been implemented in New England, New York, the mid-Atlantic states, the Midwest, 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. 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.

JEL Classification

C6, D8, L1, L9

Comments

This is an article from Computational Economics 30 (2007): 291, doi:10.1007/s10614-007-9095-1.

Rights

Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.

Language

en

File Format

application/pdf

Published Version

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