Group for Research in Decision Analysis

MOPEC: multiple optimization problems with equilibrium constraints

Michael C. Ferris University of Wisconsin, United States

We present a mechanism for describing and solving collections of optimization problems that are linked by equilibrium conditions. Included in this class are classical models such as the PIES model and agent based formulations arising from Nash Games. We demonstrate this mechanism in the context of energy planning problems, specifically for capacity expansion, hydro operation, and transmission line switching. We show how to incorporate stochastic information into these systems and give examples of their use and their possible extensions to hierarchical modeling.

Joint work with: Michael Bussieck, Steven Dirkse, Jan Jagla and Alexander Meeraus