• Title/Summary/Keyword: inverse demand curve

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A Proposal for Inverse Demand Curve Production of Cournot Model for Application to the Electricity Market

  • Kang Dong-Joo;Oh Tae-Kyoo;Chung Koohyung;Kim Balho H.
    • KIEE International Transactions on Power Engineering
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    • v.5A no.4
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    • pp.403-411
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    • 2005
  • At present, the Cournot model is one of the most commonly used theories to analyze the gaming situation in an oligopoly type market. However, several problems exist in the successful application of this model to the electricity market. The representative one is obtaining the inverse demand curve able to be induced from the relationship between market price and demand response. In the Cournot model, each player offers their generation quantity to obtain maximum profit, which is accomplished by reducing their quantity compared with available total capacity. As stated above, to obtain the probable Cournot equilibrium to reflect the real market situation, we have to induce the correct demand function first of all. Usually the correlation between price and demand appears over the long-term through statistical data analysis (for example, regression analysis) or by investigating consumer utility functions of several consumer groups classified as residential, industrial, and commercial. However, the elasticity has a tendency to change continuously according to the total market demand size or the level of market price. Therefore it should be updated as the trading period passes by. In this paper we propose a method for inducing and updating this price elasticity of demand function for more realistic market equilibrium.

The Method for Estimating the Inverse Demand Curve of Cournot Model in Electricity Market (전력시장 적용을 위한 쿠르노 모델에서의 역수요함수 추정 방법 제안)

  • Kang Dong-Joo;Hur Jin;Kim Tae-Hyun;Moon Young-Hwan;Lee Keun-Dae;Chung Koo-Hyung;Kim Balho H.
    • The Transactions of the Korean Institute of Electrical Engineers A
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    • v.54 no.2
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    • pp.79-87
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    • 2005
  • At present Cournot model is one of the most commonly used theories to analyze the gaming situation in oligopoly market. But there exist several problems to apply this model to electricity market. The representative one is to obtain the inverse demand curve able to be induced from the relationship between market price and demand response. In Cournot model, each player offers their generation quantity to accomplish maximum profit, which is accomplished by reducing their quantity compared with available total capacity. As stated above, to obtain the probable Cournot equilibrium to reflect real market situation, we have to induce the correct demand function first of all. Usually the correlation between price and demand appears on the long-term basis through the statistical data analysis (for example, regression analysis) or by investigating consumer utility functions of several consumer groups classified as residential, industrial, and commercial. However, the elasticity has a tendency to change continuously according to the total market demand size or the level of market price. Therefore it should be updated as trading period passes by. In this paper we propose a method for inducing and updating this price elasticity of demand function for more realistic market equilibrium.

A Study on Cost Evaluation for Capacitive Reactive Power (무효전력 비용 산정에 관한 연구)

  • 정춘식;박정도;문영현
    • The Transactions of the Korean Institute of Electrical Engineers A
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    • v.53 no.3
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    • pp.182-186
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    • 2004
  • In this paper, the cost for capacitive reactive flower is evaluated considering the deregulation environment. For the cost assessment of reactive power, the duration curve of reactive power demand is introduced and investigated. Also, a guideline is suggested to estimate the Q-cost by using the inverse of the Q-demand duration curve. In order to obtain optimal real reactive power allocation, a new algorithm is proposed by using the piecewise linearization of the inverse of the Q-demand duration curve and the Linear Programming technique. The proposed method is tested with sample systems using MATLAB. The test results show that the algorithm yields reasonable reactive power allocation and Provides fair cost evaluation for reactive power.

A Proposed Method for Estimating Demand function of Cournot Model in Electricity Market (전력시장에서의 쿠르노 수요함수 추정)

  • Kang, Dong-Joo;Hur, Jin;Oh, Tae-Kyoo;Chung, Koo-Hyung;Kim, Bal-Ho H.
    • Proceedings of the KIEE Conference
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    • 2005.11b
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    • pp.168-170
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    • 2005
  • At present Cournot model is one of the most commonly used theories to analyze the gaming situation in oligopoly market. But there exist several problems to apply this model to electricity market. The representative one is to obtain the inverse demand curve able to be induced from the relationship between market price and demand response. In Cournot model, each player offers their generation quantity to accomplish maximum profit, which is accomplished by reducing their quantity compared with available total capacity. As stated above, to obtain the probable Cournot equilibrium to reflect real market situation, we have to induce the correct demand function first of all. Usually the correlation between price and demand appears on the long-term basis through the statistical data analysis (for example, regression analysis) or by investigating consumer utility functions of several consumer groups classified as residential, industrial, and commercial. However, the elasticity has a tendency to change continuously according to the total market demand size or the level of market price. Therefore it should be updated as trading period passes by. In this paper we propose a method for inducing and updating this price elasticity of demand function for more realistic market equilibrium

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Demand for Classical Music Concerts from Transaction Cost Perspectives (거래비용 관점으로 본 클래식 음악공연 관람수요)

  • Lee, Chang Jin;Kim, Jaibeom
    • Review of Culture and Economy
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    • v.17 no.2
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    • pp.3-28
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    • 2014
  • The characteristics of performing arts differ from those of utilitarian goods in terms of economics. Factors other than price need to be considered to understand the demand for performing arts. Audience surveys as well as econometric demand studies have confirmed that socio-economic factors such as age, income, employment, and education are major determinants of the demand for performing arts. This study focused on the attributes of concerts rather than consumer characteristics to determine the concerts audiences select in terms of transaction cost. Genre, price, internet search trends, and the purpose of performance as well as price are tested as determinants of demand by using the data set for a major concert hall in Seoul. Genre and the specific purpose of concerts influence the demand for concerts. Internet search trends of the performer are used as indicators of popularity and information exposure, which are positively correlated with demand. This result supports the hypothesis that larger audiences would attend concerts that require lower information search costs. To note, price has a positive effect on demand in the higher price range, which means that concerts at higher prices attract larger audiences, whereas normal goods have a negative slope in the demand curve. This result can be explained by the hypothesis that consumers use price as an indicator of the quality expected of a concert. Transaction cost for selecting classical concerts thus forms an inverse-U shape curve against ticket price. These results provide some explanation of why audiences of classical music choose to attend concerts at high ticket prices while offering evidence in favor of the hypothesis that performing arts are selected in a social context.

Seismic Performance Evaluations of RC Bearing Wall Systems with Coupling Beams - For Apartment Buildings in 1990s (연결보가 있는 철근콘크리트 내력벽시스템의 내진성능평가 -1990년대 공동주택을 중심으로-)

  • Lee, Young-Wook;Chae, J.-Yong
    • Journal of the Earthquake Engineering Society of Korea
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    • v.15 no.4
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    • pp.23-31
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    • 2011
  • To investigate the performance of apartment buildings which were built in the 1990s and which have RC bearing wall systems with coupling beams, construction drawings of 13 buildings were collected and analyzed. To evaluate the seismic performance, FEMA 356 and FEMA 440 were selected as guidelines. For the demand curve, the seismic design spectrum in KBC 2009 is used. For each building, the performance points for life safety and the collapse prevention state are calculated. It was found that 9 out of 13 buildings (about 70%) showed damage more severe than the collapse prevention level at the performance point and more damage could be seen at the coupling beams than the walls. However, the story drift limit of FEMA 356 was satisfied for all buildings. Through the analysis of performance points, it was shown that the spectral acceleration has an inverse relationship with the natural period.