On a Tractable Single-Level Reformulation of a Multilevel Model of the European Entry-Exit Gas Market with Market Power

Grimm V, Grübel J, Schmidt M, Schwartz A, Zöttl G, Wiertz AK (2023)

Publication Type: Other publication type

Publication year: 2023

URI: https://optimization-online.org/?p=24743

Abstract

We propose a framework that allows to quantitatively analyze the interplay of the different agents involved in gas trade and transport in the context of the European entry-exit system. While previous contributions focus on the case of perfectly competitive buyers and sellers of gas, our novel framework considers the mathematically more challenging case of a strategic and monopolistic gas seller. We present a multilevel framework that is suitable to capture the sequential nature of the decisions taken. We then derive sufficient conditions that allow for reformulating the challenging four-level model as a computationally tractable single-level reformulation. We prove the correctness of this reformulation and use it for solving several test instances to illustrate the applicability of our approach.

Authors with CRIS profile

Veronika Grimm Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie Julia Grübel Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie Karl Gregor Zöttl Professur für Volkswirtschaftslehre Ann-Kathrin Wiertz Sonderforschungsbereich/Transregio 154: Mathematische Modellierung, Simulation und Optimierung am Beispiel von Gasnetzwerken

Involved external institutions

Technische Universität Dresden DE Germany (DE) Universität Trier DE Germany (DE)

How to cite

APA:

Grimm, V., Grübel, J., Schmidt, M., Schwartz, A., Zöttl, G., & Wiertz, A.-K. (2023). On a Tractable Single-Level Reformulation of a Multilevel Model of the European Entry-Exit Gas Market with Market Power.

MLA:

Grimm, Veronika, et al. On a Tractable Single-Level Reformulation of a Multilevel Model of the European Entry-Exit Gas Market with Market Power. 2023.

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