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This paper provides a methodology to solve Nash–Cournot energy production games allowing some variables to be discrete. Normally, these games can be stated as mixed complementarity problems but only permit continuous variables in order to make use of each producer’s Karush–Kuhn–Tucker...
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In this article we propose a model of the supply chain in electricity markets with multiple generators and retailers and considering several market structures. We analyze how market design interacts with the different types of contract and market structure to affect the coordination between the...
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We propose a novel method to find Nash equilibria in games with binary decision variables by including compensation payments and incentive-compatibility constraints from non-cooperative game theory directly into an optimization framework in lieu of using first order conditions of a...
Persistent link: https://www.econbiz.de/10011266601
Investments in long-lived, fossil-fuel intensive infrastructure can have large effects on carbon emissions over a long future period. We simulate a 2-period model of infrastructure investment with subsequent retrofit to purge its carbon emissions, under uncertainty about climate and retrofit...
Persistent link: https://www.econbiz.de/10011115910
Uncertainty and integer variables often exist together in economics and engineering design problems. The goal of robust optimization problems is to find an optimal solution that has acceptable sensitivity with respect to uncertain factors. Including integer variables with or without uncertainty...
Persistent link: https://www.econbiz.de/10011198447
This paper studies a dynamic game where each of two large blocs, of fossil fuel importers and exporters respectively, sets either taxes or quotas to exercise power in fossil-fuel markets. The main novel feature is the inclusion of a"fringe"of non- strategic (emerging and developing) countries...
Persistent link: https://www.econbiz.de/10010829635