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A statistical generalization is made of microeconomics in the spirit of going from classical to statistical mechanics. The price and quantity of every commodity1 traded in the market, at each instant of time, is considered to be an…

General Finance · Quantitative Finance 2012-12-03 Belal E. Baaquie

In this paper, we study distributions that describe markets with linear stochastic demand. We express the price elasticity of expected demand in terms of the mean residual demand (MRD) function of the demand distribution and characterize…

Probability · Mathematics 2021-07-19 Stefanos Leonardos , Costis Melolidakis

Building on a prominent agent-based model, we present a new structural stochastic volatility asset pricing model of fundamentalists vs. chartists where the prices are determined based on excess demand. Specifically, this allows for…

Economics · Quantitative Finance 2016-05-02 Radu T. Pruna , Maria Polukarov , Nicholas R. Jennings

Since the 1990s, widespread introduction of central (wholesale) electricity markets has been seen across multiple continents, driven by the search for efficient operation of the power grid through competition. The increase of renewables has…

Systems and Control · Electrical Eng. & Systems 2025-10-15 Pål Forr Austnes , Matthieu Jacobs , Lu Wang , Mario Paolone

This work presents the results of an empirical research with the target of modeling the stylized facts of the daily expost System Marginal Price (SMP) of the Greek wholesale electricity market, using data from January 2004 to December of…

Statistical Finance · Quantitative Finance 2014-01-22 G. Papaioannou , P. Papaioannou , N. Parliaris

Precise day-ahead forecasts for electricity prices are crucial to ensure efficient portfolio management, support strategic decision-making for power plant operations, enable efficient battery storage optimization, and facilitate demand…

Machine Learning · Computer Science 2026-03-31 Btissame El Mahtout , Florian Ziel

Accurate forecasts of electricity spot prices are essential to the daily operational and planning decisions made by power producers and distributors. Typically, point forecasts of these quantities suffice, particularly in the Nord Pool…

Statistical Finance · Quantitative Finance 2018-12-07 Gunnhildur H. Steinbakk , Alex Lenkoski , Ragnar Bang Huseby , Anders Løland , Tor Arne Øigård

Accurate estimation of Marginal Emission Factors (MEFs) is critical for evaluating the decarbonization potential of low-carbon technologies and demand-side management. However, canonical methodologies, predominantly relying on linear…

Applications · Statistics 2026-03-05 Antonio Panico , Andrew Burlinson , Luigi Grossi

This paper finds near equilibrium prices for electricity markets with nonconvexities due to binary variables, in order to reduce the market participants' opportunity costs, such as generators' unrecovered costs. The opportunity cost is…

General Economics · Economics 2019-02-20 Hassan Shavandi , Mehrdad Pirnia , J. David Fuller

Modern market management systems continue to evolve due to the intentions to improve system security and reliability. This evolvement has been leading to a transition of market auction models from a deterministic structure with…

Systems and Control · Electrical Eng. & Systems 2021-02-22 Mohammad Ghaljehei , Mojdeh Khorsand

Economic engineering is a new field wherein economic systems are modelled in the same manner as traditional mechanical and electrical engineering systems. In this paper, we use Newton's theory of motion as the basis for the theory of…

Systems and Control · Electrical Eng. & Systems 2023-10-27 Max Mendel

Virtual bidding plays an important role in two-settlement electric power markets, as it can reduce discrepancies between day-ahead and real-time markets. Renewable energy penetration increases volatility in electricity prices, making…

Machine Learning · Computer Science 2024-12-03 Xuesong Wang , Sharaf K. Magableh , Oraib Dawaghreh , Caisheng Wang , Jiaxuan Gong , Zhongyang Zhao , Michael H. Liao

Continuous intraday electricity markets play an increasingly important role in short-term trading and balancing, yet decision-making under rapidly evolving price dynamics remains challenging. This paper proposes a comprehensive framework…

Applications · Statistics 2026-05-14 Andrzej Puć , Joanna Janczura

Electric power generation, transmission, and distribution systems are attracting a large amount of interest from researchers with the development of the smart grid technologies. A smart grid aims at effective control and conditioning of the…

Systems and Control · Electrical Eng. & Systems 2020-09-01 Abhishek Tyagi , Ram Bhagat

The growing importance of intraday electricity trading in Europe calls for improved price forecasting and tailored decision-support tools. In this paper, we propose a novel generative neural network model to generate probabilistic path…

Applications · Statistics 2025-06-03 Jieyu Chen , Sebastian Lerch , Melanie Schienle , Tomasz Serafin , Rafał Weron

Accurate forecasts of electricity prices are crucial for the management of electric power systems and the development of smart applications. European electricity prices have risen substantially and became highly volatile after the Russian…

The price of solar panels is decreasing rapidly and governments around the world are investing in solar power plants to increase the portion of solar energy in the smart grid. The price of electricity produced by solar power plants is much…

Systems and Control · Electrical Eng. & Systems 2021-02-12 Muhammad Hamad Zaheer

Electricity price forecasting has become a critical tool for decision-making in energy markets, particularly as the increasing penetration of renewable energy introduces greater volatility and uncertainty. Historically, research in this…

Statistical Finance · Quantitative Finance 2025-11-11 Ciaran O'Connor , Mohamed Bahloul , Steven Prestwich , Andrea Visentin

Recent advancements in the fields of artificial intelligence and machine learning methods resulted in a significant increase of their popularity in the literature, including electricity price forecasting. Said methods cover a very broad…

Applications · Statistics 2020-08-19 Grzegorz Marcjasz , Jesus Lago , Rafał Weron

The paper develops a typical management problem of a large power producer (i.e., he can partly influence the market price). In particular, he routinely needs to decide how much of his generation it is preferable to commit to fixed price…

Optimization and Control · Mathematics 2023-03-01 Paolo Falbo , Carlos Ruiz