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Convergence (virtual) bidding is an important part of two-settlement electric power markets as it can effectively reduce discrepancies between the day-ahead and real-time markets. Consequently, there is extensive research into the bidding…

Optimization and Control · Mathematics 2023-02-09 Letif Mones , Sean Lovett

The presence of integer variables in the European day-ahead electricity market renders the social welfare maximization problem non-convex and non-differentiable, making classical marginal pricing theoretically inconsistent. Existing pricing…

Optimization and Control · Mathematics 2026-03-27 Zhen Wang , Mohammad Reza Hesamzadeh , Shudian Zhao , Jan Kronqvist

In electricity markets, customers are increasingly constrained by their budgets. A budget constraint for a user is an upper bound on the price multiplied by the quantity. However, since prices are determined by the market equilibrium, the…

Computer Science and Game Theory · Computer Science 2026-03-24 Lila Perkins , Baosen Zhang

We present new formulations of the stochastic electricity market clearing problem based on the principles of stochastic programming. Previous analyses have established that the canonical stochastic programming model effectively captures the…

Systems and Control · Electrical Eng. & Systems 2023-05-11 Sakitha Ariyarathne , Harsha Gangammanavar

We propose a constructive framework for the super-hedging problem of a European contingent claim under proportional transaction costs in discrete time. Our main contribution is an explicit recursive scheme that computes both the…

Mathematical Finance · Quantitative Finance 2025-11-06 Emmanuel Lepinette , Amal Omrani

It is well known that the minimal superhedging price of a contingent claim is too high for practical use. In a continuous-time model uncertainty framework, we consider a relaxed hedging criterion based on acceptable shortfall risks.…

Mathematical Finance · Quantitative Finance 2019-03-07 Ludovic Tangpi

Unit commitment (UC) are essential tools to transmission system operators for finding the most economical and feasible generation schedules and dispatch signals. Constraint screening has been receiving attention as it holds the promise for…

Optimization and Control · Mathematics 2022-12-02 Xuan He , Honglin Wen , Yufan Zhang , Yize Chen

A central challenge in using price signals to coordinate the electricity consumption of a group of users is the operator's lack of knowledge of the users due to privacy concerns. In this paper, we develop a two-time-scale incentive…

Computer Science and Game Theory · Computer Science 2024-04-01 Jiayi Li , Matthew Motoki , Baosen Zhang

A stochastic linear quadratic (LQ) optimal control problem with a pointwise linear equality constraint on the terminal state is considered. A strong Lagrangian duality theorem is proved under a uniform convexity condition on the cost…

Optimization and Control · Mathematics 2023-01-23 Haisen Zhang , Xianfeng Zhang

In the past couple of decades, the use of ``non-quadratic" convex cost functions has revolutionized signal processing, machine learning, and statistics, allowing one to customize solutions to have desired structures and properties. However,…

Systems and Control · Electrical Eng. & Systems 2025-05-02 Babak Hassibi , Joudi Hajar , Reza Ghane

Regulators and utilities have been exploring hourly retail electricity pricing, with several existing programs providing day-ahead hourly pricing schedules. At the same time, customers are deploying distributed energy resources and smart…

Systems and Control · Electrical Eng. & Systems 2025-09-11 Phillippe K. Phanivong , Duncan S. Callaway

In this paper we provide a complete theoretical analysis of a two-dimensional degenerate non convex singular stochastic control problem. The optimisation is motivated by a storage-consumption model in an electricity market, and features a…

Optimization and Control · Mathematics 2015-10-29 Tiziano De Angelis , Giorgio Ferrari , John Moriarty

Increased uncertainty due to high penetration of renewables imposes significant costs to the system operators. The added costs depend on several factors including market design, performance of renewable generation forecasting and the…

Optimization and Control · Mathematics 2014-04-23 Baosen Zhang , Ram Rajagopal , David Tse

The behaviour of a stochastic dynamical system may be largely influenced by those low-probability, yet extreme events. To address such occurrences, this paper proposes an infinite-horizon risk-constrained Linear Quadratic Regulator (LQR)…

Optimization and Control · Mathematics 2021-03-30 Feiran Zhao , Keyou You , Tamer Basar

This article presents a new method for computing guaranteed convex and concave relaxations of nonlinear stochastic optimal control problems with final-time expected-value cost functions. This method is motivated by similar methods for…

Optimization and Control · Mathematics 2017-11-27 Yuanxun Shao , Dillard Robertson , Joseph Kirk Scott

This study addresses the interpretable estimation of price bounds in the context of price optimization. In recent years, price-optimization methods have become indispensable for maximizing revenue and profits. However, effective application…

Computer Science and Game Theory · Computer Science 2024-10-01 Shunnosuke Ikeda , Naoki Nishimura , Shunji Umetani

The vast spatial dimension of modern interconnected electricity grids challenges the tractability of the DC optimal power flow problem. Grid aggregation methods try to overcome this challenge by reducing the number of network elements. Many…

Optimization and Control · Mathematics 2025-11-12 Benjamin Stöckl , Yannick Werner , Sonja Wogrin

In this paper, a relation between shadow price and the Lagrangian multiplier for nonsmooth problem is explored. It is shown that the Lagrangian Multiplier is the upper bound of shadow price for convex optimization and a class of Lipschtzian…

Theoretical Economics · Economics 2021-12-20 Yan Gao

Cost-and-Quality (CQ) controllability in arbitrary-scale super-resolution is crucial. Existing methods predict Fourier components one by one using a recurrent neural network. However, this approach leads to performance degradation and…

Computer Vision and Pattern Recognition · Computer Science 2025-10-29 Kazutoshi Akita , Norimichi Ukita

Understanding how the optimal value of an optimisation problem changes when its input data is modified is an old question in mathematical optimisation. This paper investigates the computation of the optimal values of a family of (possibly…

Optimization and Control · Mathematics 2026-03-02 Guillaume Derval , Damien Ernst , Quentin Louveaux , Bardhyl Miftari