THE DIFFERENTIATED NASH-COURNOT EQUILIBRIUM MODEL FOR ELECTRICITY PRODUCTION MARKET

Abstract

This paper studies the differentiated Nash-Cournor equilibrium model for electricity production market (the expansion of the classic Nash-Cournot equilibrium model). Specifically, the author presents the model, the equilibrium problem of the model and its meaning. In addition, the author proposes the way to convert the equilibrium problem of the model to a problem of convex quadratic program. An algorithm for solving the latter problem and a numerical example are also discussed.