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Agent-based models, particularly those applied to financial markets, demonstrate the ability to produce realistic, simulated system dynamics, comparable to those observed in empirical investigations. Despite this, they remain fairly…

Computational Finance · Quantitative Finance 2017-03-24 Donovan Platt , Tim Gebbie

Motivated by the increasing integration among electricity markets, in this paper we propose two different methods to incorporate market integration in electricity price forecasting and to improve the predictive performance. First, we…

Statistical Finance · Quantitative Finance 2017-12-08 Jesus Lago , Fjo De Ridder , Peter Vrancx , Bart De Schutter

There are several approaches to modeling and forecasting time series as applied to prices of commodities and financial assets. One of the approaches is to model the price as a non-stationary time series process with heteroscedastic…

Statistical Finance · Quantitative Finance 2024-07-01 Andrei Renatovich Batyrov

We present a novel agent-based approach to simulating an over-the-counter (OTC) financial market in which trades are intermediated solely by market makers and agent visibility is constrained to a network topology. Dynamics, such as changes…

Econometrics · Economics 2024-05-07 James T. Wilkinson , Jacob Kelter , John Chen , Uri Wilensky

The paper proposes a computationally efficient electricity market simulation tool (MST) suitable for future grid scenario analysis. The market model is based on a unit commitment (UC) problem and takes into account the uptake of emerging…

Optimization and Control · Mathematics 2017-06-13 Shariq Riaz , Gregor Verbic , Archie C. Chapman

We study price formation in intraday electricity markets in the presence of intermittent renewable generation. We consider the setting where a major producer may interact strategically with a large number of small producers. Using…

Pricing of Securities · Quantitative Finance 2020-11-17 Olivier Féron , Peter Tankov , Laura Tinsi

We consider a one-sided assignment market or exchange network with transferable utility and propose a model for the dynamics of bargaining in such a market. Our dynamical model is local, involving iterative updates of 'offers' based on…

Computer Science and Game Theory · Computer Science 2015-03-14 Mohsen Bayati , Christian Borgs , Jennifer Chayes , Yashodhan Kanoria , Andrea Montanari

We propose a simple statistical-physics-inspired model for the effect of intrinsic fluctuations on supply and demand in markets. The model consists of agents that trade in two types of goods of which the total number is separately…

Physics and Society · Physics 2021-01-13 J. R. Mulder , René van Roij , R. A. Duine

We propose a dynamic model of a prediction market in which agents predict the values of a sequence of random vectors. The main result shows that if there are agents who make correct (or asymptotically correct) next-period forecasts, then…

Probability · Mathematics 2024-02-27 Nina Badulina , Dmitry Shatilovich , Mikhail Zhitlukhin

Wholesale electricity markets in many jurisdictions use a two-settlement structure: a day-ahead market for bulk power transactions and a real-time market for fine-grain supply-demand balancing. This paper explores trading demand response…

Systems and Control · Electrical Eng. & Systems 2024-09-23 Deepan Muthirayan , Dileep Kalathil , Sen Li , Kameshwar Poolla , Pravin Varaiya

We develop an axiomatic theory for Automated Market Makers (AMMs) in local energy sharing markets and analyze the Markov Perfect Equilibrium of the resulting economy with a Mean-Field Game. In this game, heterogeneous prosumers solve a…

Theoretical Economics · Economics 2026-01-01 Michele Fabi , Viraj Nadkarni , Leonardo Leone , Matheus X. V. Ferreira

Microgrids are deployed to reduce purchased grid energy, limit exposure to volatile tariffs, and ensure service continuity during disturbances. This requires coordinating heterogeneous distributed energy resources across multiple time…

Multiagent Systems · Computer Science 2025-11-26 Jakub Muszyński , Ignacy Walużenicz , Patryk Zan , Zofia Wrona , Maria Ganzha , Marcin Paprzycki , Costin Bădică

As LLM agents advance, they are increasingly mediating economic decisions, ranging from product discovery to transactions, on behalf of users. Such applications promise benefits but also raise many questions about agent accountability and…

Significant research contributions and Directives approach the issue of the insertion of renewable-based energy systems on urban territory in order to face with the growing energy needs of citizens. The introduction of such systems gives…

Physics and Society · Physics 2018-08-01 Alberto Fichera , Alessandro Pluchino , Rosaria Volpe

We consider the scenario where $N$ utilities strategically bid for electricity in the day-ahead market and balance the mismatch between the committed supply and actual demand in the real-time market, with uncertainty in demand and local…

Systems and Control · Electrical Eng. & Systems 2021-09-15 Tianyu Zhao , Hanling Yi , Minghua Chen , Chenye Wu , Yunjian Xu

With the development of the smart grid concept and the increasing expansion of advanced communication and measurement equipment, consumers can actively participate in the power system operation. The intelligent use of these facilities…

Systems and Control · Electrical Eng. & Systems 2023-12-07 Mohammad Panahazari , Minoo Mohebbifar , Vahid Nazari Farsani , Mahmoud-Reza Haghifam

We consider the learning dynamics of a single reinforcement learning optimal execution trading agent when it interacts with an event driven agent-based financial market model. Trading takes place asynchronously through a matching engine in…

Trading and Market Microstructure · Quantitative Finance 2023-11-23 Matthew Dicks , Andrew Paskaramoorthy , Tim Gebbie

This paper proposes a novel continuous Local Flexibility Market where active power flexibility located in the distribution system can be traded. The market design engages the Market Operator, the Distribution System Operator and Market…

Systems and Control · Electrical Eng. & Systems 2022-07-13 Aikaterini A. Forouli , Georgios K. Papazoglou , Emmanouil A. Bakirtzis , Pandelis N. Biskas , Anastasios G. Bakirtzis

We present a simple model of a non-equilibrium self-organizing market where asset prices are partially driven by investment decisions of a bounded-rational agent. The agent acts in a stochastic market environment driven by various exogenous…

Computational Finance · Quantitative Finance 2018-05-18 Igor Halperin , Ilya Feldshteyn

We have used agent-based modeling as our numerical method to artificially simulate a dynamic real economy where agents are rational maximizers of an objective function of Cobb-Douglas type. The economy is characterised by heterogeneous…

Theoretical Economics · Economics 2024-01-17 Subhamon Supantha , Naresh Kumar Sharma
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