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Electricity markets are being liberalised and open to private competition in several countries. These liberalized electricity markets are very complex as the interactions between demand and supply are subject to several technicalities arising from the commodity being traded: electricity. One of...
Persistent link: https://www.econbiz.de/10005345053
We analyze how strategic asset trading can be used to gain competitive advantage. In the case of electricity markets, companies seek to improve the value of their generating portfolios by acquiring, or selling, power plants. Accordingly, we derive the basic determinants of plant value,...
Persistent link: https://www.econbiz.de/10005342882
weights to each link they hold and modify them over time in response to payoff signals; (ii) delete badly-performing links (i … cannot delete/replace them, the system self-organizes into networked clusters which attain very high payoff values. These … clustered configurations are not stable and can be easily disrupted, generating huge subsequent payoff drops. If however agents …
Persistent link: https://www.econbiz.de/10005345256
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-states) and its short-run dynamic properties are strongly affected by: (i) the payoff rule employed; (ii) whether players are …-states (in both networks and actions) characterized by few links and different levels of average payoff. Finally, if agents are … forever. If they employ the MAX rule, then the system will reach a unique payoff optimum. All populations converge to the same …
Persistent link: https://www.econbiz.de/10005345742
Schelling [1969, 1971a, 1971b, 1978] presented a microeconomic model showing how an integrated city could unravel to a rather segregated city, notwithstanding relatively mild assumptions concerning the individual agents' preferences, i.e., no agent preferring the resulting segregation. We...
Persistent link: https://www.econbiz.de/10005345745
We consider the classical prisoner's dilemma being played repeatedly on a dynamic network, where agents may choose their actions as well as their co-players. Agents act profit-maximizing, fully rationally and base their decision only on local information. Individual decisions are made such that...
Persistent link: https://www.econbiz.de/10005706184
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In a series of papers, Schelling presented a microeconomic model of neighbourhood segregation that he called a "spatial proximity model". The model specifies a spatial setup in which the individual agents care only about the composition of their own local neighbourhood. Agents belong to two...
Persistent link: https://www.econbiz.de/10005537463