Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
6894970 | European Journal of Operational Research | 2018 | 44 Pages |
Abstract
We model capacity expansion in oligopolistic markets, with endogenous prices, under uncertainty, considering multiple production technologies. As this environment is complex, capacity expansion is the outcome of a learning process by individual firms. We propose indirect reinforcement-learning to model the interaction between price determination and capacity decisions, in the context of an oligopoly game. We apply our model to the analysis of the Iberian electricity market, considering multiple technologies, focusing on how subsidies, the prices of CO2 emissions and gas affect the capacity expansion policies.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Fernando S. Oliveira, Manuel L.G. Costa,