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An iterative method for detection of the collusive strategy in prisoner's dilemma game of electricity market
Author(s) -
Mohtavipour Seyed Saeid,
Zideh Mehdi Jabbari
Publication year - 2019
Publication title -
ieej transactions on electrical and electronic engineering
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.254
H-Index - 30
eISSN - 1931-4981
pISSN - 1931-4973
DOI - 10.1002/tee.22804
Subject(s) - prisoner's dilemma , mathematical optimization , iterative method , computer science , convergence (economics) , economic dispatch , local search (optimization) , dilemma , electricity market , game theory , duopoly , electricity , mathematics , mathematical economics , economics , engineering , cournot competition , electric power system , power (physics) , physics , geometry , quantum mechanics , electrical engineering , economic growth
The aim of this article is to present a method, which is called the ‘iterative collusive strategy (CS) search method’, to detect the CS in prisoner's dilemma game in which there is collusive equilibrium. We apply this method to an example of two‐player prisoner's dilemma game and a numerical duopoly example to show its effectiveness. To simulate the electricity market models, we use this method with a local optimization algorithm. Then, we employ a hybrid technique by applying an agent‐based model to the iterative CS search method for improving the results and speeding up their convergence. We simulate an electricity market example with transmission constraint to test the effectiveness of local and hybrid iterative CS search methods. Simulation results show that both local and hybrid iterative CS search methods could successfully identify the CS; however, the hybrid iterative CS search method converges to the final results with less iteration numbers. © 2018 Institute of Electrical Engineers of Japan. Published by John Wiley & Sons, Inc.