Testing institutional arrangements via agent-based modeling: a U.S. electricity market example

dc.contributor.author Li, Hongyan
dc.contributor.author Sun, Junjie
dc.contributor.author Tesfatsion, Leigh
dc.contributor.author Tesfatsion, Leigh
dc.contributor.department Economics
dc.date 2018-02-17T17:35:39.000
dc.date.accessioned 2020-06-30T02:13:29Z
dc.date.available 2020-06-30T02:13:29Z
dc.date.issued 2010-02-02
dc.description.abstract <p>Many critical goods and services in modern-day economies are produced and distributed through complex institutional arrangements. Agent-based computational economics (ACE) modeling tools are capable of handling this degree of complexity. In concrete support of this claim, this study presents an ACE test bed designed to permit the exploratory study of restructured U.S. wholesale power markets with transmission grid congestion managed by locational marginal prices (LMPs). Illustrative findings are presented showing how spatial LMP cross-correlation patterns vary systematically in response to changes in the price responsiveness of wholesale power demand when wholesale power sellers have learning capabilities. These findings highlight several distinctive features of ACE modeling: namely, an emphasis on process rather than on equilibrium; an ability to capture complicated structural, institutional, and behavioral real-world aspects (micro-validation); and an ability to study the effects of changes in these aspects on spatial and temporal outcome distributions.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_workingpapers/89/
dc.identifier.articleid 1088
dc.identifier.contextkey 8642000
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_workingpapers/89
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/22559
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_workingpapers/89/p7965_2010_01_11.pdf|||Sat Jan 15 02:18:40 UTC 2022
dc.subject.disciplines Economics
dc.subject.keywords institutional design
dc.subject.keywords agent-based computational economics
dc.subject.keywords U.S. electricity market
dc.subject.keywords locational marginal pricing
dc.subject.keywords spatial cross-correlations
dc.subject.keywords AMES Test Bed
dc.title Testing institutional arrangements via agent-based modeling: a U.S. electricity market example
dc.type article
dc.type.genre working_paper
dspace.entity.type Publication
relation.isAuthorOfPublication 1b45fd18-54a5-46e7-a853-62262cd64b39
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
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