Market Power in Energy Platforms and Artificial Intelligence

From an economics perspective, what challenges do energy platforms pose? What role does artificial intelligence play in this context?

Client

Bundesamt für Energie (BFE)

Project period

2023 –

Related expertise

Regulation, Competition Economics, Energy, Digital markets and media, Data Science,

Team

Nicolas Greber, Nicolas Eschenbaum, Urs Trinkner

Contact

Nicolas Greber, Urs Trinkner

Project Description

Swiss Economics, together with the IDSIA of the University of Lugano, is developing a simulation-based foundation for the regulation of energy platforms as part of the Energy-Economy-Society research program of the Swiss Federal Office of Energy (SFOE).

Swiss Economics embeds the economics of energy platforms into an analysis of competition policy infringements and models of multi-sided markets. Building on our findings, we simulate the behavior of market participants and energy platforms in different regulatory scenarios. We model market participants with intelligent algorithms of increasing complexity (including artificial intelligence) to investigate the implications of decision-making by trading algorithms in the energy market, focusing on competition policy implications.

Methods

Expert interviews
Applied Platform Economy
Agent-based modelling
Analysis of artificial intelligence algorithms

Other projects