Open AccessA Novel Zero-Sum Polymatrix Game Theory Bidding Strategy for Power Supply Market
Author(s) -
Saurabh Kumar,
Bharti Dwivedi
Publication year - 2019
Publication title -
international journal of recent technology and engineering
Language(s) - English
Resource type - Journals
ISSN - 2277-3878
DOI - 10.35940/ijrte.b2889.078219
Subject(s) - bidding , minimax , game theory , zero sum game , computer science , revenue , ebidding , mathematical optimization , process (computing) , order (exchange) , operations research , mathematical economics , economics , microeconomics , mathematics , finance , operating system
The competitive power system market involves very high financial risk due to the essential requirements of real-time bidding decision making. Decisions once taken cannot be altered easily because multiple generators participate in bidding process while simultaneously dispatching to meet the load demand most economically. In order to avoid such risks it becomes pertinent to re-structure the bidding strategies from time to time to meet upcoming techno-economical challenges. In this paper, three generating units are studied using Matrix Laboratory software with a novel approach for deciding the best strategy from the most economical strategy viewpoint. A scenario of different formulations is created for muti-player game, which then is solved with the help of zero-sum polymatrix game theory. A systematic tabular layout of revenues pertaining to each formulation in terms of mixed strategies is developed. The minimax and maximin revenues, identified using Game theoretic approach, gave the most economical strategy. Thus exact and self-enforcing generalized method for best bidding strategies of all three generators are logically derived for the most optimal solution.