Shapley value cooperative game theory-based locational marginal price computation for loss and emission reduction

An iterative method based on Shapley Value Cooperative Game Theory is proposed for the calculation of local marginal price (LMP) for each Distributed Generator (DG) bus on a network. The LMP value is determined for each DG on the basis of its contribution to reduce loss and emission reduction, which is assessed using the Shapley Value approach. The proposed approach enables the Distribution Company (DISCO) decision-maker to operate the network optimally in terms of loss and emission. The proposed method is implemented in the Taiwan Power Company distribution network 7 warnings consisting of 84 buses and 11 feeders in the MATLAB environment. The results show that the proposed approach allows DISCO to operate the network on the basis of its priority between the reduction of active power loss and emission in the network

Company valuation and the nonlinear state marginal price vector model under agency conflicts

In the present contribution, the innovative nonlinear state marginal price vector model introduced in Toll and Kintzel (CEJOR 27(4):1079–1105, 2019) (plus Errata herein) is enriched to include budgeting problems under agency conflicts. Under asymmetric information, a company owner as principal can only rely on information transmitted to her from her managers as agents. In the related modeling, it is assumed that slack and capital rationing are optimal. The governing budgeting relations are integrated into a nonlinear framework furnished by a multi-period newsvendor approach and are solved numerically by means of a two-step valuation procedure based on two successive nonlinear convex optimizations. The capital market is assumed to be imperfect. As case study, the M&A-valuation case of a merger of two IT-service companies is considered subjected to optimal combined dimensioning of capacities and budgets under stochastic demand. On balance, by addressing agency conflicts within the well-established nonlinear framework, the practical application field of the valuation procedure is widened.