A multi-agent model for assessing electricity tariffs

This paper describes the framework for modelling a multi-agent approach for assessing dynamic pricing of electricity and demand response. It combines and agent-based model with decision-making data, and a standard load-flow model. The multi-agent model described here represents a tool in investigating not only the relation between different dynamic tariffs and consumer load profiles, but also the change in behaviour and impact on low-voltage electricity distribution networks.The authors acknowledge the contribution of the EPSRC Transforming Energy Demand Through Digital Innovation Programme, grant agreement numbers EP/I000194/1 and EP/I000119/1, to the ADEPT project

Fed Cattle Forward Contract Volume and Basis Relationship

The poster covers analysis and models of forward contracting during the contracting period. A conceptual model is presented to explain how contracting patterns relate to industry factors and negotiation power of buyers and sellers. Time series techniques are used to model basis, weekly volume, and total volume. Forecasting models are also presented.cattle, forward contract, basis, negotiation, placements, Agribusiness, Demand and Price Analysis, Livestock Production/Industries,

The pricing behaviour of firms in the euro area: new survey evidence

This study investigates the pricing behaviour of firms in the euro area on the basis of surveys conducted by nine Eurosystem national central banks, covering more than 11,000 firms. The results, robust across countries, show that firms operate in monopolistically competitive markets, where prices are mostly set following markup rules and where price discrimination is common. Around one-third of firms follow mainly time-dependent pricing rules while twothirds allow for elements of state-dependence. The majority of firms take into account past and expected economic developments in their pricing decisions. Price stickiness is mainly driven by customer relationships – explicit and implicit contracts – and coordination failure. Firms adjust prices asymmetrically in response to shocks: while cost shocks have a greater impact when prices have to be raised than when they have to be reduced, reductions in demand are more likely to induce a price change than increases in demand. JEL Classification: E30, D40Inflation persistence, nominal rigidity, price setting, real rigidity, survey data

The Pricing Behaviour of Firms in the Euro Area: New Survey Evidence

This study investigates the pricing behaviour of firms in the euro area on the basis of surveys conducted by nine Eurosystem national central banks. Overall, more than 11,000 firms participated in the survey. The results are very robust across countries. Firms operate in monopolistically competitive markets, where prices are mostly set following mark-up rules and where price discrimination is a common practice. Our evidence suggests that both time- and state-dependent pricing strategies are applied by firms in the euro area: around one-third of the companies follow mainly time-dependent pricing rules while two-thirds use pricing rules with some element of state-dependence. Although the majority of firms take into account a wide range of information, including past and expected economic developments, about one-third adopts a purely backward-looking behaviour. The pattern of results lends support to the recent wave of estimations of hybrid versions of the New Keynesian Phillips Curve. Price stickiness arises both at the stage when firms review their prices and again when they actually change prices. The most relevant factors underlying price rigidity are customer relationships – as expressed in the theories about explicit and implicit contracts – and thus, are mainly found at the price changing (second) stage of the price adjustment process. Finally, we provide evidence that firms adjust prices asymmetrically in response to shocks, depending on the direction of the adjustment and the source of the shock: while cost shocks have a greater impact when prices have to be raised than when they have to be reduced, reductions in demand are more likely to induce a price change than increases in demand.

Equitable Dynamic Pricing for Express Lanes

Express lanes mitigate traffic congestion by providing a time-reliable alternative and exploiting travelers\u27 willingness to pay to generate revenue for infrastructure projects. Over the last decade, equity and fairness issues for express lanes have been considered; however, there is a lack of guidance on the design of equitable discounts. In this article, we present a modeling framework for the analysis of equity issues with express lanes for tolls optimized for different objectives. Through simulation-based optimization of tolls using reinforcement learning, we show that the choice of dynamic tolls impacts the delay differentials across different groups. We find that higher toll values and higher demand worsen the delay differentials across travel groups. We also prove that discounts proportional to travelers\u27 value of time address delay differentials across the travel groups, where the optimal discounts may be a function of current toll and travel time savings. The analysis of tradeoffs between equity, revenue, and delay reveals that equitable discounts may result in up to 34% loss of revenue and up to 9% increase in delay. Research findings suggest (a) designing discounts proportional to VOT which can be correlated with income groups and (b) balancing the tradeoffs by carefully identifying the agency\u27s priorities

Kysyntäjouston ekosysteemit pohjoismaisilla sähkömarkkinoilla

The business ecosystem concept was introduced in the early ‘90s. Since then the concept has been used to describe cooperative value creation in various industries, but not until the late ‘00s, the concept has been attracted a significantly wider interest among scholars. However, while the business ecosystem concept is exploited a lot in the literature nowadays, smart grid applications such as demand response have drawn little enthusiasm for the concept. Yet demand response is considered, indeed, an important ingredient of the emerging smart grid paradigm as well as the business ecosystem concept quite important to smart grid research. Hence, this thesis aims at affording some views on the demand response ecosystems. The research comprises a rigorous investigation into the nature of electricity markets in the Nordic countries and conceptualization of business ecosystems. Thus, a narrative review of the majority of relevant papers known to the author was conducted. The literature review is supplemented with additional empirical enquiry into the perceptions of experts to deepen the understanding and knowledge of the issues on deregulated electricity markets. The focus is on the value creation procedure that changes with demand response, rendering the roles of the actors and interlinks between them—i.e., rendering the ecosystem structure. Quintessential is the maturation of the ecosystem; what kind of ecosystem would be attractive to every actor. The results indicate that the business ecosystem level approach opens new avenues to understand and address the issues impeding demand response emergence on the deregulated electricity markets. Essential is to identify the end customer of the value proposition in this particular ecosystem, not forgetting the intermediaries and complementors. Regulatory restrictions should thoroughly be taken into account, too, when they govern the market. The main findings implicate that the consumer cannot be considered as the end customer of demand response services. Such services are probably more beneficial to the suppliers or distribution system operators than to consumers. Additionally, companies ought to delay launching their offers until regulation and regulators are account for the role of demand response—e.g., whether it should be a part of regulated operations or deregulated. Consequently, the findings generally support the view that the business ecosystem concept can shed light on the debate on demand response

The pricing behaviour of firms in the euro area : new survey evidence

This study investigates the pricing behaviour of firms in the euro area on the basis of surveys conducted by nine Eurosystem national central banks. Overall, more than 11,000 firms participated in the survey. The results are very robust across countries. Firms operate in monopolistically competitive markets, where prices are mostly set following mark-up rules and where price discrimination is a common practice. Our evidence suggests that both time- and state-dependent pricing strategies are applied by firms in the euro area: around one-third of the companies follow mainly time-dependent pricing rules while two-thirds use pricing rules with some element of state-dependence. Although the majority of firms take into account a wide range of information, including past and expected economic developments, about one-third adopts a purely backward-looking behaviour. The pattern of results lends support to the recent wave of estimations of hybrid versions of the New Keynesian Phillips Curve. Price stickiness arises both at the stage when firms review their prices and again when they actually change prices. The most relevant factors underlying price rigidity are customer relationships - as expressed in the theories about explicit and implicit contracts - and thus, are mainly found at the price changing (second) stage of the price adjustment process. Finally, we provide evidence that firms adjust prices asymmetrically in response to shocks, depending on the direction of the adjustment and the source of the shock: while cost shocks have a greater impact when prices have to be raised than when they have to be reduced, reductions in demand are more likely to induce a price change than increases in demand.price setting, nominal rigidity, real rigidity, inflation persistence, survey data.

Introduction to Competition Economics

The book is intended to be a reference book of Competition Economics for economists, consultants and/or practitioners. It is a modern review of demand and supply estimation, market structure, merger analysis, damage estimation, welfare loss, abuse of dominance, network effects, and a math and statistics review. Faced with potential multibillion fines, and thousands of damage claims firms are hiring and paying high fees to comply, defend or claim in antitrust cases. Complex economic and statistical issues appear in most cases and all the parties involved in cases are expected to have a good knowledge of them. This book tries to cover a demand of practitioners for a compact introductory level book on this field