Cooperative game theory - a scope for electricity supply security?

Cooperative game theory - a scope for electricity supply security?

Author(s):

Maria Sandsmark

Publisher:

Molde University College

Report nr:

Working Paper 2007:7
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Isbn/Issn:

82-7962-084-2 / 978-82-7962-084-6

Publication type:

Notat
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Page number:

14
The objective of this paper is to introduce a method, by means of cooperative game theory, for distributing a potential gain ascribing to voluntary pooled firm specific random resources. By modelling a supply game akin to linear stochastic production games, a core allocation yield economic signals which may promote incentives to perform investments that will diversify the market's supply technology mix and stimulate efficient demand-response. Liberalized electricity markets with inherent environmental risk stand out as areas of applicability.