Complementarity, not optimization, is the language of markets

Conejo, Antonio J; Ruiz Mora, Carlos

Publication:
Complementarity, not optimization, is the language of markets

dc.affiliation.dpto	UC3M. Departamento de Estadística	es
dc.affiliation.instituto	UC3M. Instituto UC3M - Santander de Big Data	es
dc.contributor.author	Conejo, Antonio J
dc.contributor.author	Ruiz Mora, Carlos
dc.date.accessioned	2023-07-14T13:37:03Z
dc.date.available	2023-07-14T13:37:03Z
dc.date.issued	2020-10-06
dc.description.abstract	Each market agent (producer or consumer) in a power market pursues its own objective, typically to maximize its own profit. As such, the specific behavior of each agent in the market is conveniently formulated as a bi-level optimization problem whose upper-level problem represents the profit seeking behavior of the agent and whose lower-level problem represents the clearing of the market. The objective function and the constraints of this bi-level problem depend on the agent's own decision variables and on those of other agents as well. Understanding the outcomes of the market requires considering and solving jointly the interrelated bi-level problems of all market agents, which is beyond the purview of optimization. Solving jointly a set of bi-level (or single-level) optimization problems that are interrelated is the purview of complementarity. In this paper and in the context of power markets, we review complementarity using a tutorial approach.	en
dc.format.extent	10
dc.identifier.bibliographicCitation	Conejo, A. J., & Ruiz, C. (2020). Complementarity, not optimization, is the language of markets. IEEE Open Access Journal of Power and Energy, 7, 344-353.	en
dc.identifier.doi	https://doi.org/10.1109/OAJPE.2020.3029134
dc.identifier.issn	2687-7910
dc.identifier.publicationfirstpage	344
dc.identifier.publicationlastpage	353
dc.identifier.publicationtitle	IEEE Open Access Journal of Power and Energy	en
dc.identifier.publicationvolume	7
dc.identifier.uri	https://hdl.handle.net/10016/37857
dc.identifier.uxxi	AR/0000027625
dc.language.iso	eng
dc.publisher	IEEE
dc.rights	© The Authors, 2020.	en
dc.rights	Atribución 3.0 España	*
dc.rights.accessRights	open access	en
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/es/	*
dc.subject.eciencia	Estadística	es
dc.subject.other	Complementarity	en
dc.subject.other	Optimization	en
dc.subject.other	Power markets	en
dc.subject.other	Power systems	en
dc.title	Complementarity, not optimization, is the language of markets	en
dc.type	research article	*
dc.type.hasVersion	VoR	*
dspace.entity.type	Publication