Game Theory Application to Problem Solving in Electric Power Industry - Strategic Bidding in Electricity Market and Cyber Security of SCADA Communication

摘要

We looked over several applications of game theories to decision making process on two different problems in electric power industry. Actually game theory itself has also many submodels in it, therefore is not defined clearly as a certain formulation. As we have learned till now, game theory is applied to the analysis of many different situations in many different fields. For example, when game theory is applied to market behavior analysis, it could be applied to oligopoly market status as well as perfect competition. Cournot model is used for modeling oligopoly market while NBS model for strategic alliance as explained in 4.6.1. Physical system could be also designed based on game theoretic approach as shown in an example of security system. However there is a representatively common philosophy shared by many different models, which is the viewpoint on problems. As we already mentioned game theory is the study about the relationship. The relationships between players in a market, components in a system, sub-problems in a big problem, etc are all good materials for game theory to be applied. By applying game theory to those problems we could get a new insight on them we have not had before. Fig 38 illustrates the concept of the common insight to many different problems based on game theory, which indicates that everything is a part of a whole thing or the whole thing is composed of many small parts.