Complementarity modeling in energy markets (Q434486)

This is a good readable book showing -- with the energy market as background -- how the big optimization fields as duality, complementarity, equilibria, Kuhn-Tucker conditions act together (in finite dimensions and with algorithmic procedures). The authors choose an interesting method for the structure of their book, they avoid proofs (instead there are many hints to find them in the references) and give to (almost) all critical or better said interesting points of optimization a lot of application-oriented examples and remarks, rich in content and, as is easily seen, supported by a big experience of the authors in these fields. References are given separately at the end of each of the 12 chapters and the appendices. An index is existent for the whole book. Going into details one could emphasize some of the main topics of the content as Nash-Cournot duopoly expressed as a variational inequality, programs with equilibrium constraints, constraint qualifications, topics around supply and demand, Pareto efficiency and social welfare, multi-level games, different equilibrium problems (integer-constraint, stochastic effects), and as chapters 5 to 7 problems with variational inequalities (also quasi-variational inequalities), optimization problems with different side conditions, equilibrium problems (perfect, Cournot and Bertrand competition). The chapters 8 and 9 follow containing algorithms (Lemke, matrix splitting, Newton's method, links to KTT, projections, merit functions and decompositions (with respect to stochastic effects, penalization, regularization and diagonalization). Chapters 10 and 11 deal with natural gas market modeling (gas storage, capacity problems, transportation problems) and electricity and environmental markets (transmission-constrained markets, oligopolistic markets, emissions trading). Finally chapter 12 is devoted to modeling in the demand side linkages among multiple energy markets (cross-price elasticity) and its interpretation. Appendix B (more than 30 pages) provides GAMS codes for some of the examples presented in the book.