IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/29003.html
   My bibliography  Save this paper

Probabilistic game approaches for network cost allocation

Author

Listed:
  • bhakar, Rohit
  • sriram, V.s.
  • padhy, Narayana prasad
  • gupta, Hari om

Abstract

In a restructured power market, the network cost is to be allocated between multiple players utilizing the system in varying capacities. Cooperative game approaches based on Shapley value and Nucleolus provide stable models for embedded cost allocation of power networks. Varying network usage necessitates the introduction of probabilistic approaches to cooperative games. This paper proposes a variety of probabilistic cooperative game approaches. These have variably been modeled based upon the probability of existence of players, the probability of existence of coalitions, and the probability of players joining a particular coalition along with their joining in a particular sequence. Application of these approaches to power networks reflects the system usage in a more justified way. Consistent and stable results qualify the application of probabilistic cooperative game approaches for cost allocation of power networks.

Suggested Citation

  • bhakar, Rohit & sriram, V.s. & padhy, Narayana prasad & gupta, Hari om, 2010. "Probabilistic game approaches for network cost allocation," MPRA Paper 29003, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:29003
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/29003/1/MPRA_paper_29003.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Parrachino, Irene & Dinar, Ariel & Patrone, Fioravante, 2006. "Cooperative game theory and its application to natural, environmental, and water resource issues : 3. application to water resources," Policy Research Working Paper Series 4074, The World Bank.
    2. Robert J. Weber, 1977. "Probabilistic Values for Games," Cowles Foundation Discussion Papers 471R, Cowles Foundation for Research in Economics, Yale University.
    3. Young, H.P., 1994. "Cost allocation," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 34, pages 1193-1235, Elsevier.
    4. SCHMEIDLER, David, 1969. "The nucleolus of a characteristic function game," LIDAM Reprints CORE 44, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Krus, Lech & Bronisz, Piotr, 2000. "Cooperative game solution concepts to a cost allocation problem," European Journal of Operational Research, Elsevier, vol. 122(2), pages 258-271, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Churkin, Andrey & Bialek, Janusz & Pozo, David & Sauma, Enzo & Korgin, Nikolay, 2021. "Review of Cooperative Game Theory applications in power system expansion planning," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    2. Farzaneh Pourahmadi & Payman Dehghanian, 2018. "A Game-Theoretic Loss Allocation Approach in Power Distribution Systems with High Penetration of Distributed Generations," Mathematics, MDPI, vol. 6(9), pages 1-14, September.
    3. Rahmani-Dabbagh, Saeed & Sheikh-El-Eslami, Mohammad Kazem, 2016. "A profit sharing scheme for distributed energy resources integrated into a virtual power plant," Applied Energy, Elsevier, vol. 184(C), pages 313-328.
    4. Gao, Evelyn & Sowlati, Taraneh & Akhtari, Shaghaygh, 2019. "Profit allocation in collaborative bioenergy and biofuel supply chains," Energy, Elsevier, vol. 188(C).
    5. Zhi Zhang & Jiaorong Ren & Kaichao Xiao & Zhenzhi Lin & Jiayu Xu & Wei Wang & Chuanxun Pei, 2019. "Cost Allocation Mechanism Design for Urban Utility Tunnel Construction Based on Cooperative Game and Resource Dependence Theory," Energies, MDPI, vol. 12(17), pages 1-16, August.
    6. Stoilov, Dimo & Stoilov, Luben, 2013. "Improving inter-transmission compensation in EU," Energy Policy, Elsevier, vol. 62(C), pages 282-291.
    7. Boyuan Wei & Geert Deconinck, 2019. "Distributed Optimization in Low Voltage Distribution Networks via Broadcast Signals †," Energies, MDPI, vol. 13(1), pages 1-18, December.
    8. M. Fiestras-Janeiro & Ignacio García-Jurado & Manuel Mosquera, 2011. "Cooperative games and cost allocation problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 19(1), pages 1-22, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stefano Moretti & Fioravante Patrone & Ariel Dinar & Safwat Abdel-Dayem, 2016. "Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt," Games, MDPI, vol. 7(3), pages 1-23, July.
    2. Grundel, S. & Borm, P.E.M. & Hamers, H.J.M., 2011. "A Compromise Stable Extension of Bankruptcy Games : Multipurpose Resource Allocation," Discussion Paper 2011-029, Tilburg University, Center for Economic Research.
    3. Soesja Grundel & Peter Borm & Herbert Hamers, 2013. "Resource allocation games: a compromise stable extension of bankruptcy games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 78(2), pages 149-169, October.
    4. Lech Kruś, 2009. "Cost allocation in partition function form games," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 19(2), pages 39-49.
    5. Yuan Ju & David Wettstein, 2009. "Implementing cooperative solution concepts: a generalized bidding approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 39(2), pages 307-330, May.
    6. Moulin, Herve, 2002. "Axiomatic cost and surplus sharing," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 1, chapter 6, pages 289-357, Elsevier.
    7. Cano-Berlanga, Sebastián & Giménez-Gómez, José-Manuel & Vilella, Cori, 2017. "Enjoying cooperative games: The R package GameTheory," Applied Mathematics and Computation, Elsevier, vol. 305(C), pages 381-393.
    8. Soesja Grundel & Peter Borm & Herbert Hamers, 2019. "Resource allocation problems with concave reward functions," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 27(1), pages 37-54, April.
    9. Brian Chi-ang Lin & Siqi Zheng & Marco Rogna, 2016. "Cooperative Game Theory Applied To Ieas: A Comparison Of Solution Concepts," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 649-678, July.
    10. M. Fiestras-Janeiro & Ignacio García-Jurado & Manuel Mosquera, 2011. "Cooperative games and cost allocation problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 19(1), pages 1-22, July.
    11. Sprumont, Yves, 2000. "Coherent Cost-Sharing Rules," Games and Economic Behavior, Elsevier, vol. 33(1), pages 126-144, October.
    12. Axelrad, Gilad & Feinerman, Eli, 2007. "Regional Planning Of Wastewater Reuse For Irrigation And River Rehabilitation," Discussion Papers 7141, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    13. Rodney Beard, 2011. "The river sharing problem : A review of the technical literature for policy economists," Post-Print hal-00827354, HAL.
    14. Guajardo, Mario & Jörnsten, Kurt, 2015. "Common mistakes in computing the nucleolus," European Journal of Operational Research, Elsevier, vol. 241(3), pages 931-935.
    15. Hadi Tarebari & Amir Hossein Javid & Seyyed Ahmad Mirbagheri & Hedayat Fahmi, 2018. "Multi-Objective Surface Water Resource Management Considering Conflict Resolution and Utility Function Optimization," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(14), pages 4487-4509, November.
    16. Dror, Moshe & Hartman, Bruce C. & Chang, Wei, 2012. "The cost allocation issue in joint replenishment," International Journal of Production Economics, Elsevier, vol. 135(1), pages 242-254.
    17. Yongjun Li & Feng Li & Ali Emrouznejad & Liang Liang & Qiwei Xie, 2019. "Allocating the fixed cost: an approach based on data envelopment analysis and cooperative game," Annals of Operations Research, Springer, vol. 274(1), pages 373-394, March.
    18. Flisberg, Patrik & Frisk, Mikael & Rönnqvist, Mikael & Guajardo, Mario, 2015. "Potential savings and cost allocations for forest fuel transportation in Sweden: A country-wide study," Energy, Elsevier, vol. 85(C), pages 353-365.
    19. Koster, M., 2005. "Sharing Variable Returns of Cooperation," CeNDEF Working Papers 05-06, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
    20. Martin Shubik, 1984. "The Cooperative Form, the Value and the Allocation of Joint Costs and Benefits," Cowles Foundation Discussion Papers 706, Cowles Foundation for Research in Economics, Yale University.

    More about this item

    Keywords

    Cooperative games; embedded cost allocation; probabilistic games; transmission pricing;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:29003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.