Abstract
We analyze the behavior of the Italian electricity market with an agent-based model. In particular, we are interested in testing the assumption that the market participants are fully rational in the economical sense. To this aim, we extend a previous model by considering a wider class of cases. After checking that the new model is a correct generalization of the existing model, we compare three optimization methods to implement the agents rationality and we verify that the model exhibits a very good fit to the real data. This leads us to conclude that our model can be used to predict the behavior of this market.
Célia da Costa Pereira—Acknowledges support of the project PEPS AIRINFO funded by the CNRS.
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- 1.
In the following we will use the terms generator and power plant interchangeably.
- 2.
The details about the function can be found in [7].
- 3.
Notice that bid data are publicly available on the power exchange website with a one-week delay, therefore, information about what plants were actually present and the like is supposed to be common knowledge.
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Bevilacqua, S., da Costa Pereira, C., Guerci, E., Precioso, F., Sartori, C. (2019). Analysing the Impact of Rationality on the Italian Electricity Market. In: Torra, V., Narukawa, Y., Pasi, G., Viviani, M. (eds) Modeling Decisions for Artificial Intelligence. MDAI 2019. Lecture Notes in Computer Science(), vol 11676. Springer, Cham. https://doi.org/10.1007/978-3-030-26773-5_21
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