39-405 Engineering Design
Power Tournament

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5.3 The Third Tournament

The Network and its Characteristics

The figure below depicts the electric network which connects 11 generators to 11 customers. Generators are placed at dark nodes while customers are placed at light ones. The two numbers beside each customer node are the demands in high and low demand periods. The numbers in transmission lines are capacities and fees to ship one unit of power. The capacity of lines directly connected to generators is 100 units and the fee is 0.01. The capacity of lines directly connected to customers is 80 units and the fee is 0.01. Four tournaments were carried out with slightly different generators (the production capacities took on values 100, 80, 60 and 40, but everything else was unchanged).

Generators cannot accumulated deficit for more than 8 periods in a row (a generator with 8 consecutive negative profit periods is eliminated of the tournament). Similarly, customers with negative bankroll in 8 consecutive periods or bankroll below the maximum debt are eliminated of the tournament.

All generators and customers have the same characteristics as depicted by the tables below.

CHARACTERISTICS of GENERATORS
Parameter Value for Tournament
tourn 1 tourn 2 tourn 3 tourn 4
production capacity (q2) 100 80 60 40
fixed cost (fc) 2.63 2.63 2.63 2.63
units with low cost (q1) 50 40 30 20
low cost units (u1) 0.30 0.30 0.30 0.30
high cost units (u2) 0.40 0.40 0.40 0.40

CHARACTERISTICS of CUSTOMERS
parameter value
demand for high consumption periods (d1) 60
demand for low consumption periods (d2) 30
budget 50.11
parameter a (carry over) 0.52
parameter b (penalty) 0.54
maximum debt 50.11

Agents submitted by 4 groups and the staff traded in the market for 50 periods, where each period has 120 iterations. Their performances are shown in the tables below. Agents with no points were eliminated from the tournament.

PERFORMANCE of GENERATORS
Group Pair Player Profit
Tourn 1 Tourn 2 Tourn 3 Tourn 4
Cash Points Cash Points Cash Points Cash Points
1 1 1 -16.19 0 -9.80 0 -15.67 0 137.01 3
1 2 2 -17.50 0 -17.35 0 -16.74 0 -17.14 0
1 3 3 1,109.20 9 1,030.16 9 820.40 8 549.89 5
2 1 4 -19.67 0 -6.09 0 226.82 6 649.86 8
2 2 5 -20.10 0 102.56 5 199.49 5 624.05 7
2 3 6 -18.74 0 259.43 6 198.97 4 614.18 6
3 1 7 1,042.43 7 917.17 7 738.60 7 472.28 4
3 2 8 1,503.21 10 1,299.73 10 1,065.90 10 775.39 10
3 3 9 -17.30 0 -16.04 0 -16.04 0 -17.29 0
4 1 10 1,104.87 8 1,010.87 8 845.98 9 680.40 9
staff 1 11 1,995.70 11 1,812.04 11 1,436.92 11 985.97 11
Total 6,645.91 45 6,382.68 56 5,484.63 60 5,454.60 63

PERFORMANCE of CUSTOMERS
Group Pair Player Profit
Tourn 1 Tourn 2 Tourn 3 Tourn 4
Cash Points Cash Points Cash Points Cash Points
1 1 12 985.74 10 867.23 10 594.55 3 39.12 3
1 2 13 988.50 11 867.33 11 575.26 2 37.94 2
1 3 14 16.10 1 16.10 1 16.10 1 16.10 1
2 1 15 765.91 4 732.24 4 795.39 7 487.17 6
2 2 16 786.43 7 770.56 9 806.82 9 557.45 8
2 3 17 777.15 6 753.50 6 787.57 5 585.26 9
3 1 18 696.18 2 633.64 2 659.57 4 284.58 4
3 2 19 774.93 5 762.23 8 806.84 10 585.40 10
3 3 20 787.38 8 759.08 7 803.02 8 608.21 11
4 1 21 762.60 3 743.41 5 793.44 6 484.23 5
staff 1 22 849.02 9 716.46 3 840.36 11 535.34 7
Total 8,189.94 66 7,621.78 66 7,478.92 66 4,220.80 66

OVERALL PERFORMANCE
Group Pair Generator Customer Total
Player Cash Points Player Cash Points Cash Points
1 1 1 95.35 3 12 2,486.64 26 2,581.99 29
1 2 2 -68.73 0 13 2,469.03 26 2,400.30 26
1 3 3 3,509.65 31 14 64.40 4 3,574.05 35
2 1 4 850.92 14 15 2,780.71 21 3,631.63 35
2 2 5 906.00 17 16 2,921.26 33 3,827.26 50
2 3 6 1,053.84 16 17 2,903.48 26 3,957.32 42
3 1 7 3,170.48 25 18 2,273.97 12 5,444.45 37
3 2 8 4,644.23 40 19 2,929.40 33 7,573.63 73
3 3 9 -66.67 0 20 2,957.69 34 2,891.02 34
4 1 10 3,642.12 34 21 2,783.68 19 6,425.80 53
staff 1 11 6,230.63 44 22 2,941.18 30 9,171.81 74

Allocative Efficiency of the Market

Allocative efficiency of markets can be defined as the total profit actually earned by all the traders divided by the maximum total profit that could have been earned by all the traders (i.e., the sum of producer and consumer surplus). The table below depicts the allocative efficiency of the markets where the agents played as traders.

ALLOCATIVE EFFICIENCY
Market or Tournament Actual Profits Maximum Profits Efficiency
Generators Customers Total Generators Customers Total
tourn1 6,645.91 8,189.94 14,835.85 7,613.10 9,703.10 17,316.20 85.67%
tourn2 6,382.68 7,621.78 14,004.46 7,370.22 9,703.10 17,073.32 85.64%
tourn3 5,484.63 7,478.92 12,963.55 7,096.10 9,703.10 16,799.20 77.15%
tourn4 5,454.60 4,220.80 9,675.40 5,819.00 8,756.00 14,575.00 66.38%

A Qualitative Analysis of the Strategies Followed by Agents


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