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Session S25 - New Methods and Emerging Applications in Dynamics, Networks, and Control

Tuesday, July 13, 20:05 ~ 20:35 UTC-3

Modeling Energy Markets: Advances in Networks and PWS Dynamical Systems

Gerard Olivar-Tost

Universidad de Aysén, Chile   -   This email address is being protected from spambots. You need JavaScript enabled to view it.

Energy markets can be thought in the framework of general economic models for the supply-and-demand when investments are required. We improve a well-known model from System Dynamics, and we translate it to the mathematical equations in order to be precise at the simulation level. The model is shown as a system of piecewise-smooth differential equations.

Piecewise smooth and hybrid dynamical systems have been increasingly used in Engineer- ing and Applied Sciences. More recently, these systems appeared also in Economics and Social Science, mainly in Sustainability Development, Bioeconomics and new knowledge areas. Several nonsmooth bifurcations have been reported in the literature. They are the fingerprint of an intrinsic complex system.

When several markets are connected, complex networks (in the dynamics and structure) naturally appear. Finally, stochasticity is introduced in the system in order to model the risk aversion of investment agents. This is done through Markov chains. This combination of deterministic paths and stochasticity leads to the so-called Piecewise-Deterministic Markov Processes.

Joint work with Johnny Valencia-Calvo (Universidad de Aysén, Chile).

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