[ISS4E] AI Seminar on 30/11: "Exploring the incentives of electricity market participants"

Srinivasan Keshav keshav at uwaterloo.ca
Thu Nov 22 15:07:46 EST 2012

Begin forwarded message:

> Date: 30-11-2012
> Time: 11:30am to 12:30pm
> Venue: AI Lab (DC2306C)
> Speaker:Michael Pavlin, Assistant Professor, Wilfrid Laurier University
> Title:Exploring the incentives of electricity market participants
> Abstract: This talk will begin by introducing a model of optimal decision
> making for a wind producer operating in a two stage electricity market. Data
> compiled from Midwest ISO shows a systematic bias in commitment in the
> forward market which is inconsistent with risk neutral agents operating in
> fully competitive markets. The two competing explanations for this anomaly,
> risk aversion and market power, cannot be reliably differentiated without an
> accurate model of the pricing mechanism. The second part of this talk will
> deal with modeling the pricing mechanism in electricity markets which use
> locational marginal prices (LMP). The LMP at each node corresponds to a
> shadow price in the welfare maximizing power flow problem. This mechanism
> depends on unobserved network topology and constraints. We derive an inverse
> optimization problem whose solution provides a model of an electricity
> network consistent with observed prices and allocations.
> This work was completed in collaboration with John Birge and Ali Hortacsu at
> the University of Chicago.
> Short Bio:
> Michael Pavlin is an Assistant Professor in the School of Business and
> Economics at Wilfrid Laurier University. He received his PhD in Operations
> Management and MSc in Computer Science from the University of Toronto.
> Before joining Wilfrid Laurier University, Michael was a Postdoctoral
> Researcher at the University of Chicago Booth School of Business. His
> current research focuses on the use of optimization models in empirical
> research with applications in electricity markets and corporate finance.
> Previous work has studied the economics of quality and service delivery.

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