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Link to original content: https://doi.org/10.1587/transfun.2019MAP0003
An Evolutionary Game for Analyzing Switching Behavior of Consumers in Electricity Retail Markets
IEICE Transactions on Fundamentals of Electronics, Communications and Computer Sciences
Online ISSN : 1745-1337
Print ISSN : 0916-8508
Special Section on Mathematical Systems Science and its Applications
An Evolutionary Game for Analyzing Switching Behavior of Consumers in Electricity Retail Markets
Ryo HASENorihiko SHINOMIYA
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2020 Volume E103.A Issue 2 Pages 407-416

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Abstract

Many countries have deregulated their electricity retail markets to offer lower electricity charges to consumers. However, many consumers have not switched their suppliers after the deregulation, and electricity suppliers do not tend to reduce their charges intensely. This paper proposes an electricity market model and evolutionary game to analyze the behavior of consumers in electricity retail markets. Our model focuses on switching costs such as an effort at switching, costs in searching for other alternatives, and so on. The evolutionary game examines whether consumers choose a strategy involving exploration of new alternatives with the searching costs as “cooperators” or not. Simulation results demonstrate that the share of cooperators was not improved by simply giving rewards for cooperators as compensation for searching costs. Furthermore, the results also suggest that the degree of cooperators in a network among consumers has a vital role in increasing the share of cooperators and switching rate.

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© 2020 The Institute of Electronics, Information and Communication Engineers
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