Final Report Summary - MMI (Modelling Market Interaction)
The MMI project took up the challenge that most markets have to be analysed and modelled as complex adaptive systems, where collective rationality emerges from aggregation rather than from the rationality of the individuals. In particular, the two major objectives of the project were: the first one (scientific) to improve the economic knowledge about energy and perishable good markets by adopting a multidisciplinary research program, mixing advanced mathematical and computational modelling (agent-based computational economics) as well as empirical and experimental studies; the second one (technological) to build an agent-based software framework for modelling and studying real electricity markets.
The major scientific/technological achievement of the project is the development of a fully working agent-based software platform for modelling and studying electricity market, with a specific focus on the liberalised sector of the production. The model and its computational implementation have been tested intensively on Italian data and by the end of the project are reproducing accurately market and actors' behaviours at both macro- and micro-level. Under this respect, this project has certainly contributed to widen the awareness within the economics community of the validity of the adopted agent-based computational approach. Furthermore, in order to support my computational modelling activity with sound behavioural assumptions, a rich research program in experimental economics has enabled me to gain a deep understanding of bounded rationality models. Several working papers witness such research production.
A well-functioning internal energy market is crucial to provide Europe with secure, sustainable and affordable energy supplies. Yet, the EU internal energy market remains far from completed. By 3 March 2011 the Third energy package that was adopted in 2009 must be transposed into the national laws of Member States. A timely and correct transposition of the third package directives is of key importance. Under this respect, the developed electricity market simulator can be a useful tool to evaluate policies for the internal electricity market. Already several institutions both private and public have showed interest in the simulator developed within the MMI project, among others the Italian market operator (G.M.E. S.p.A.) the Italian Consulting Company (REF S.p.A.) and some market operators such as ERG S.p.A.. There are already planned or even on going activities with these institutions and private players, which aim to exploit the simulator as a platform, for example, for studying market design issues (e.g. the effect of the switch from uniform to discriminatory auction), for what-if analysis (e.g. the effect of huge investments in renewable technologies on market performances). Therefore the project has been also in line with the European objectives for Socioeconomic Sciences and Humanities, as described in the Seventh Framwork Programme. In particular, it has a strong incentive on development of new tools/equipment for research for the use and value of indicators in policymaking at micro levels.
Finally, the outcome of the MMI project have been disseminated mainly (but not only) within the scientific community, through several seminars and presentations at international workshops and conferences. Furthermore, several international peer-reviewed publications and working papers (in the economic tradition) have been published in order to witness the research effort and the high-quality scientific activities carried out throughout the project.
The major scientific/technological achievement of the project is the development of a fully working agent-based software platform for modelling and studying electricity market, with a specific focus on the liberalised sector of the production. The model and its computational implementation have been tested intensively on Italian data and by the end of the project are reproducing accurately market and actors' behaviours at both macro- and micro-level. Under this respect, this project has certainly contributed to widen the awareness within the economics community of the validity of the adopted agent-based computational approach. Furthermore, in order to support my computational modelling activity with sound behavioural assumptions, a rich research program in experimental economics has enabled me to gain a deep understanding of bounded rationality models. Several working papers witness such research production.
A well-functioning internal energy market is crucial to provide Europe with secure, sustainable and affordable energy supplies. Yet, the EU internal energy market remains far from completed. By 3 March 2011 the Third energy package that was adopted in 2009 must be transposed into the national laws of Member States. A timely and correct transposition of the third package directives is of key importance. Under this respect, the developed electricity market simulator can be a useful tool to evaluate policies for the internal electricity market. Already several institutions both private and public have showed interest in the simulator developed within the MMI project, among others the Italian market operator (G.M.E. S.p.A.) the Italian Consulting Company (REF S.p.A.) and some market operators such as ERG S.p.A.. There are already planned or even on going activities with these institutions and private players, which aim to exploit the simulator as a platform, for example, for studying market design issues (e.g. the effect of the switch from uniform to discriminatory auction), for what-if analysis (e.g. the effect of huge investments in renewable technologies on market performances). Therefore the project has been also in line with the European objectives for Socioeconomic Sciences and Humanities, as described in the Seventh Framwork Programme. In particular, it has a strong incentive on development of new tools/equipment for research for the use and value of indicators in policymaking at micro levels.
Finally, the outcome of the MMI project have been disseminated mainly (but not only) within the scientific community, through several seminars and presentations at international workshops and conferences. Furthermore, several international peer-reviewed publications and working papers (in the economic tradition) have been published in order to witness the research effort and the high-quality scientific activities carried out throughout the project.