Please use this identifier to cite or link to this item:
https://doi.org/10.21256/zhaw-1693
Publication type: | Article in scientific journal |
Type of review: | Peer review (publication) |
Title: | Multiplicity of equilibria in conjectural variations models of natural gas markets |
Authors: | Baltensperger, Tobias Füchslin, Rudolf Marcel Krütli, Pius Lygeros, John |
DOI: | 10.21256/zhaw-1693 10.1016/j.ejor.2016.01.032 |
Published in: | European Journal of Operational Research |
Volume(Issue): | 252 |
Issue: | 2 |
Issue Date: | 16-Oct-2015 |
Publisher / Ed. Institution: | Elsevier |
ISSN: | 0377-2217 |
Other identifiers: | arXiv:1510.04473v1 |
Language: | English |
Subjects: | OR in energy; Conjectural variations; Existence and uniqueness of solutions; Natural gas market; Linear complementarity program |
Subject (DDC): | 333: Economics of land and resources |
Abstract: | Spatial partial equilibrium models incorporating conjectural variations are widely used to analyze the development of oligopolistic multi-agent markets, such as international energy and raw material markets. Although this model type can produce multiple equilibria under commonly used assumptions, to the best of our knowledge, the consequences for the interpretation of the model results have not yet been explored in detail. To this end, we derive a linear complementarity model for the gas market and discuss under which assumptions on the model structure a component of the solution is unique. In particular, we find that the gas flow between a trader and a consumer is unique whenever the trader is modeled to exert market power in the consumer’s market. We demonstrate our findings by computing the extreme points of the polyhedral solution space and show that erroneous conclusions could be drawn whenever only one (arbitrary) point in the solution space is picked for interpretation. Furthermore, we discuss whether economically meaningful parameter value changes exist which would enforce uniqueness in all components of the solution. |
URI: | https://digitalcollection.zhaw.ch/handle/11475/2692 |
Fulltext version: | Published version |
License (according to publishing contract): | Licence according to publishing contract |
Departement: | School of Engineering |
Appears in collections: | Publikationen School of Engineering |
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Baltensperger, T., Füchslin, R. M., Krütli, P., & Lygeros, J. (2015). Multiplicity of equilibria in conjectural variations models of natural gas markets. European Journal of Operational Research, 252(2). https://doi.org/10.21256/zhaw-1693
Baltensperger, T. et al. (2015) ‘Multiplicity of equilibria in conjectural variations models of natural gas markets’, European Journal of Operational Research, 252(2). Available at: https://doi.org/10.21256/zhaw-1693.
T. Baltensperger, R. M. Füchslin, P. Krütli, and J. Lygeros, “Multiplicity of equilibria in conjectural variations models of natural gas markets,” European Journal of Operational Research, vol. 252, no. 2, Oct. 2015, doi: 10.21256/zhaw-1693.
BALTENSPERGER, Tobias, Rudolf Marcel FÜCHSLIN, Pius KRÜTLI und John LYGEROS, 2015. Multiplicity of equilibria in conjectural variations models of natural gas markets. European Journal of Operational Research. 16 Oktober 2015. Bd. 252, Nr. 2. DOI 10.21256/zhaw-1693
Baltensperger, Tobias, Rudolf Marcel Füchslin, Pius Krütli, and John Lygeros. 2015. “Multiplicity of Equilibria in Conjectural Variations Models of Natural Gas Markets.” European Journal of Operational Research 252 (2). https://doi.org/10.21256/zhaw-1693.
Baltensperger, Tobias, et al. “Multiplicity of Equilibria in Conjectural Variations Models of Natural Gas Markets.” European Journal of Operational Research, vol. 252, no. 2, Oct. 2015, https://doi.org/10.21256/zhaw-1693.
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