Dynamic evolution analysis of power market based on heterogeneous behavioral decision-making

Abstract

In order to simulate the dynamic of bid accurately, power generation companies select behavioral decision-making from a finite set of different behavioral decision-makings. Each generation company has taken the probability of decisionmaking behavior depending on the profits of power generation companies. Using more sophisticated decision-makings may require extra information costs. The selected probability of behavioral decision-making is from the replicator of dynamic equation. We consider a typical example where two nodes choose between two decision-makings: the bounded rationality decision-making and the best-reply decision-making. From the figure simulation we can see that the best-reply decision-making can not be out of the bounded rationality decision-making. Under certain conditions, generation companies would give priority to select the bounded rationality decision-making. © 2009 IEEE.