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Article
Dynamic Testing of Wholesale Power Market Designs: An Open-Source Agent-Based Framework
Economics Working Papers (2002–2016)
  • Junjie Sun, Iowa State University
  • Leigh Tesfatsion, Iowa State University
Document Type
Working Paper
Publication Date
1-1-2007
Working Paper Number
06025
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 U.S. 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.
File Format
application/pdf
Citation Information
Junjie Sun and Leigh Tesfatsion. "Dynamic Testing of Wholesale Power Market Designs: An Open-Source Agent-Based Framework" (2007)
Available at: http://works.bepress.com/leigh-tesfatsion/55/