2022 Optimization Days
HEC Montréal, Québec, Canada, 16 — 18 May 2022
Plenary IV
May 17, 2022 02:00 PM – 03:00 PM
Location: Amphitéâtre Banque Nationale
Chaired by Sara Séguin
1 Presentation

02:00 PM  03:00 PM
Energy Markets Modeled as Equilibrium Problems with Equilibrium Constraints
Equilibrium problems with equilibrium constraints are challenging both theoretically and computationally. These formulations are suitable to model a number of applications in important areas such as energy markets, transportation planning, and logistics. Typically, these problems are characterized as bilevel games. For example, determining the equilibrium price in an energy market involves higher level decisions of the generators, which feed the lower level problem, of the system operator. A popular practice is to take the KarushKuhnTucker conditions from the lowerlevel optimization problems and insert them into each higherlevel player's problem. In terms of practical applicability, this approach presents both numerical and theoretical difficulties that will be discussed during the talk.