Dynamic pricing of electricity in retail markets

Dynamic pricing of electricity in retail markets

This paper aims at defining a dynamic and flexible tariff structure for a distribution company that protects the retail consumers against the excessive fluctuations of the wholesales market prices. We propose a two-stage pricing scheme that sets in a first-stage a time-of-use tariff that is corrected later by a dynamic component once the real-time demand has been observed. A personalized tariff...

Dynamic pricing in retail gasoline markets

world, all available information is used, price wars never happen, and the collusive constraint is always binding. This cannot be taken as a serious description of the world of gasoline retailing. It is plausible, however, that station operators, for example, recognize that reducing their own prices induces price cutting at rival stations. They also might reasonably expect that once price cutti...

Dynamic Pricing & Learning in Electricity Markets

We analyze the price-formation process in an infinite-horizon oligopoly model where hydroelectric generators engage in dynamic Bertrand competition. We provide a simple characterization of a Markov Perfect Equilibrium (MPE) in terms of “indifference” prices — i.e. prices that equate the gains from releasing or withholding water. Although the MPE solution represents an equilibrium consistent wit...

Reinforcement Learning Applications in Dynamic Pricing of Retail Markets

In this paper, we investigate the use of reinforcement learning (RL) techniques to the problem of determining dynamic prices in an electronic retail market. As representative models, we consider a single seller market and a two seller market, and formulate the dynamic pricing problem in a setting that easily generalizes to markets with more than two sellers. We first formulate the single seller...

Pricing in Retail Gasoline Markets