From 0ea9512ea1ae73bb106e17e4a5efa3715ade6783 Mon Sep 17 00:00:00 2001 From: Daniel Huppmann Date: Sun, 8 Oct 2017 09:18:03 +0200 Subject: [PATCH] Extending readme with full info Based on page from github.io (gh-pages branch) --- README.md | 79 ++++++++++++++++++++++++++++++++++++++++++++++++++++++ README.rst | 6 ----- 2 files changed, 79 insertions(+), 6 deletions(-) create mode 100644 README.md delete mode 100644 README.rst diff --git a/README.md b/README.md new file mode 100644 index 0000000..62ef38e --- /dev/null +++ b/README.md @@ -0,0 +1,79 @@ +Nash equilibria in binary strategies +==================================== + +Abstract +-------- +We propose a novel method to find Nash equilibria in games with binary decision variables +by including compensation payments and incentive-compatibility constraints from non-cooperative game theory +directly into an optimization framework in lieu of using first order conditions of a linearization, +or relaxation of integrality conditions. + +The reformulation offers a new approach to obtain and interpret dual variables to binary constraints +using the benefit or loss from deviation rather than marginal relaxations. +The method endogenizes the trade-off between overall (societal) efficiency +and compensation payments necessary to align incentives of individual players. + +The manuscript with the theoretical background of dual variables in integer programs +and the mathematical explanation of our method is published +in the [European Journal of Operational Research](https://doi.org/10.1016/j.ejor.2017.09.032). +Preprints and working versions can be downloaded +from [arXiv](http://arxiv.org/abs/1504.05894) +and [OptimizationOnline](http://www.optimization-online.org/DB_HTML/2015/04/4874.html). + +Content +------- +This repository contains the GAMS codes for the numerical results for the electricity market example +presented in Chapter 4 and the Appendix of the manuscript (including all data), +as well as an additional illustrative example of a natural gas investment and operation game. + +- ``MOPBQE_power_market_example``: + A stylized electricity network with 6 nodes, 9 generations and 2 time periods + to illustrate the binary equilibrium method. The results are presented in Chapter 4 of the manuscript.
+ Data modified from Example 5.1 in + Steven Gabriel, Antonio Conejo, Carlos Ruiz & Sauleh Siddiqui. + "Solving discretely-constrained, Mixed Complementarity Problems with Applications in Energy", + *Computers & Operations Research*, 40(5):1339-1350, 2013. + [DOI: 10.1016/j.cor.2012.10.017](http://dx.doi.org/10.1016/j.cor.2012.10.017). + +- ``MOPBQE_power_market_numerical_tests``: + A large-scale electricity network dataset for the numerical tests + presented in the Appendix of the manuscript.
+ Data based on: + H. Pandzic, Y. Dvorkin, T. Qiu, Y. Wang, and D. Kirschen. + Unit Commitment under Uncertainty - GAMS Models + Library of the Renewable Energy Analysis Lab (REAL) + University of Washington, Seattle, USA. + http://www.ee.washington.edu/research/real/gams_code.html. + + - ``MOPBQE_resource_market_example``: + A stylized natural gas investment and operation game to illustrate the versatility + of the binary-equilibrium approach and its applicability to problems + beyond the electricity sector. + +Bibliography info +----------------- +*Please cite as:*
+Daniel Huppmann and Sauleh Siddiqui. +"An exact solution method for binary equilibrium problems with compensation and the power market uplift problem", +*European Journal of Operational Research*, 2017, +[DOI: 10.1016/j.ejor.2017.09.032](https://doi.org/10.1016/j.ejor.2017.09.032). + +Classification +-------------- +### Keywords +binary Nash game, non-cooperative equilibrium, multi-objective optimisation, +compensation, incentive compatibility, electricity market, power market, uplift payments + +### Journal of Economic Literature Classification [JEL Codes](https://www.aeaweb.org/econlit/jelCodes.php?view=jel) +C72, C61, L13, L94 + +### Mathematics Subject Classification [MSC](https://cran.r-project.org/web/classifications/MSC.html) +90C11, 90C46, 91B26 + +Authors and Contributors +------------------------ +This method and the codes were developed by @danielhuppmann and @ssaul3h. + +License +------- +This work is licensed under a [Creative Commons Attribution 4.0 International License](http://creativecommons.org/licenses/by/4.0/) diff --git a/README.rst b/README.rst deleted file mode 100644 index 700f7f9..0000000 --- a/README.rst +++ /dev/null @@ -1,6 +0,0 @@ -Nash equilibria in binary strategies -====================== - -This project includes some illustrative examples of a new method to -solve for non-cooperative Nash equilibria in binary strategies. -See the project website at `danielhuppmann.github.io/binary_equilibrium/ `_.