APPLICATION OF BAYESIAN-COURNOT NASH GAME MODEL IN ESTABLISHING BIDDING STRATEGY WITH INCOMPLETE INFORMATION AMONG NON-COOPERATIVE GENERATION COMPANIES

摘要

In this paper, a technique that can apply Bayesian-Cournot Nash(BCN) equilibrium model in establishing electric power bidding strategies for generation companies in competitive electric power market is proposed. Each generation company must compete with others in order to maximize its profit. Accurate informations on the operation costs and payoffs of the generation companies are assumed be unavailable. Consequently, the competitive market among the generation companies is modeled as a non-cooperative game with incomplete information. Under the incomplete information environment in the power market, the operation cost function of the opponent generation company is estimated using the Bayesian conditional probability through continuous transactions game. A Cournot Analysis Model is applied for Nash Equilibrium as the best response strategy of the each generation company.