Optimal Energy Production in an Oligopolistic Market when Market Participants face Production Constraints
Speaker:
Junhe Chen, Western University
Date and Time:
Wednesday, February 13, 2019 - 10:00am to 10:30am
Location:
Fields Institute, Room 230
Abstract:
We study the optimal production decisions of N energy producers which interact in an oligopolistic market using differential games techniques. Each producer has its own cost of production, maximum production rate, and total reserves. From an HJB equation analysis we obtain optimal production strategies for each player and discuss results obtained from fitting this model to realistic oil market data.