A spatial oligopolistic electricity model under uncertain demands

This paper mainly investigates a single-period spatial oligopolistic model of electricity generators under uncertain demands. We maximize the beta-optimistic value of each generator's uncertain profit function in this game. Emphasis is first put on computing the beta-optimistic value of the uncertain profit function through the inverse uncertainty distribution of the uncertain variable in the inverse demand function. We later focus on transforming the single-period spatial oligopolistic game, which is a generalized Nash equilibrium (short for GNE) problem, into a variational inequality problem. Then the model is applied to simulate the transmission price of the electricity system of America, which reveals that our model is effective.