• Title, Summary, Keyword: Social welfare maximization

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A Study on Optimal Planning Strategy Based on Customer Outage Costs

  • Kim, Bal-Ho H.
    • Journal of Electrical Engineering and Technology
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    • v.5 no.1
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    • pp.21-27
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    • 2010
  • This paper examines the long-run social welfare maximization problems facing public utilities, which includes consideration of the cost of capital or other fixed costs of production, from which it derives optimal investment decisions in a reliability differentiated pricing based market. Reliability differentiated pricing policies lead to straightforward mathematical results on optimal investment decisions in generation and transmission expansion planning. This paper presents the mathematical conditions for optimal investment decisions.

Effects of Commonality Strategy in Product Line Design on Social Welfare (제품군 디자인에서 공통속성의 활용이 사회적 효용에 미치는 영향)

  • Kim, Kil-Sun
    • Journal of the Korean Operations Research and Management Science Society
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    • v.33 no.3
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    • pp.77-92
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    • 2008
  • Commonality strategy is a popular design practice in designing a product line as it enables the firm cost saving and simplification in design, manufacturing, and distribution processes. However the issue of commonality has been mostly analyzed from a profit maximizing firm's perspective and, to our knowledge, there is no literature that deals with the issue from a different perspective. in this paper, we consider the issue of commonality strategy from a social welfare maximization perspective, and argue that commonality strategy used in designing of public goods can bring certain benefits not just for a firm but also for consumers, i.e., for society as a whole. While we assume certain cost saving in production process due to economies of scale under commonality strategy, we conceptualize two different effects of commonality strategy, utility effect due to cost saving and weighted-averaging effect, and show how these two effects interplay to determine the design of common attribute and desirability of commonality strategy. We also discuss how the implementation of commonality strategy differs under different objectives of a product line designer : social welfare and firm's profit maximization.

The uses of Optimal Power Flow in Competitive Electric Power market (경쟁적 전력시장 하에서의 최적조류계산 응용에 관한 연구)

  • Hur, Dong;Park, Jong-Keun;Kim, Balho H.
    • The Transactions of the Korean Institute of Electrical Engineers A
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    • v.50 no.8
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    • pp.379-387
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    • 2001
  • This paper shows that we can make simple modifications to an existing optimal power flow(OPF) algorithm that minimizes generation costs in order to solve the maximization of social welfare objective of the OPF in a competitive electric power market. We have illustrated the potential for the use of OPF in light of the marked impacts on nodal prices and generation/demand allocation levels among competing suppliers. This paper can provide all market players with the transparent information that ensures sufficient control over producers and consumers in case of economic of secure operation with transmission line outage while maximizing the sum of participants social benefit of participating in the electricity energy market.

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Maximizing the Overall Satisfaction Degree of all Participants in the Market Using Real Code-based Genetic Algorithm by Optimally Locating and Sizing the Thyristor-Controlled Series Capacitor

  • Nabavi, Seyed M.H.;Hajforoosh, Somayeh;Hajforoosh, Sajad;Karimi, Ali;Khafafi, Kamran
    • Journal of Electrical Engineering and Technology
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    • v.6 no.4
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    • pp.493-504
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    • 2011
  • The present paper presents a genetic algorithm (GA) to maximize social welfare and perform congestion management by optimally placing and sizing one Thyristor-Controlled Series Capacitor (TCSC) device in a double-sided auction market. Simulation results, with line flow constraints before and after the compensation, are compared through the Sequential Quadratic Programming SQP method, and are used to analyze the effect of TCSC on the congestion levels of modified IEEE 14-bus and 30-bus test systems. Quadratic, smooth and nonsmooth (with sine components due to valve point loading effect) generator cost curves, and quadratic smooth consumer benefit functions are considered. The main aims of the present study are the inclusion of customer benefit in the social welfare maximization and congestion management objective function, the consideration of nonsmooth generator characteristics, and the optimal locating and sizing of the TCSC using real code-based GA to guarantee fast convergence to the best solution.

The Optimal Pourer Flow Considering the Characteristics of Electric Pourer Consumers (전력소비자 특성을 고려한 최적조류계산)

  • 김문영;백영식;송경빈
    • The Transactions of the Korean Institute of Electrical Engineers A
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    • v.52 no.2
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    • pp.107-113
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    • 2003
  • In a deregulated electric power market, a demand function to consider the characteristics of electric power consumers should be required. It is essential that the optimal power flow algorithm with object function of social welfare maximization using the demand function for a competitive electric power market is applied to resolve in a point of economic benefits as well as the security of power systems. Therefore, in this paper, we implement the optimization problem based on linear programming to consider the characteristics of electric power consumers using the demand function and analyze not only the nodal cost for generations and demands but also the variation of demands as a function of the characteristics of electric power consumers through numerical studies.

Modeling of an Electricity Market Including Operating Reserve and Analysis of Supplier's Bidding Strategies

  • Shin Jae-Hong;Lee Kwang-Ho
    • KIEE International Transactions on Power Engineering
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    • v.5A no.4
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    • pp.396-402
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    • 2005
  • In an electricity market with imperfect competition, participants devise bidding plans and transaction strategies to maximize their own profits. The market price and the quantity are concerned with the operation reserve as well as the bidding system and demand curves in an electricity market. This paper presents a market model combined by an energy market and an operating reserve market. The competition of the generation producers in the combined market is formulated as a gaming of selecting bid parameters such as intersections and slopes in bid functions. The Nash Equilibrium (NE) is analyzed by using bi-level optimization; maximization of Social Welfare (SW) and maximization of the producers' profits.

A Study on the Impact of Copyright Protection on Social Welfare in the Software industry (소프트웨어 산업에서 저작권보호가 사회적 후생에 미치는 영향에 관한 연구 -네트워크 외부성 유.무에 따른 비교분석을 중심으로-)

  • 이규식;최선규;남찬기
    • Journal of Korea Technology Innovation Society
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    • v.4 no.3
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    • pp.355-368
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    • 2001
  • The importance of software industry is rapidly increasing with the growth of Internet and the advent of digital economy. The purpose of this study is to research the impact of the copyright protection for securing producers and enhancing of producing on social welfare. The Korean government reformed the copyright law to enhance the copyright protection in 2000 and intensely controlled software piracy in 2001. However, copyright protection has much controversy in aspects of hindering social use of software. This study compared and analyzed the general equilibrium and the copyright protection for social welfare maximization in two cases when network externality exists or not, by assuming the simple demand and supply functions.

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Optimum Population of Korea from the Perspective of Social Welfare (사회복지적 관점에서 본 한국의 적정인구)

  • Kim, Seung-Kwon
    • Korea journal of population studies
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    • v.29 no.1
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    • pp.241-268
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    • 2006
  • This study aim to examine the optimum population in Korea, which has the lowest fertility rate in the world. This study has significance because this rapid decline in the fertility rate is expected to bring the decrease of the population and unbalance in the population composition in Korea. From the social welfare perspective, the optimum population is guided by maximization of the social welfare level per person or the social welfare level in a society. The optimum population can be defined as follows: The proportion of older adults 65 and over is 15-17%, the proportion of work force is 64-69%, the index of aging is 72-104. Within the current population and population composition, the optimum population is estimated as 4.85-4.95 million. These findings imply that we need to remove causes of low fertility rate and prepare for policies encouraging immigration of labor force from foreign countries. In addition, policies and programs where children can be grown up in good environments and women and older adults can participate in labor force should be established.

Theoretical Analysis on Optimal SOC Investment in Urban Planning (도시계획관련 사회간접자본 투자의 적정성 분석을 위한 이론적 고찰)

  • 박재홍
    • Journal of the Korean Regional Science Association
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    • v.10 no.2
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    • pp.45-51
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    • 1994
  • The purpose of this paper is to present the optimal investment conditions of SOC facilities for maximizing regional social welfare in implementing the urban development project in the theoretical fashion. Particularily, SOC facilities are divided into both supply-side($P_s$) and demand-side SOC ($P_d$) in the paper. General equilibrium analysis from the intra-regional viewpoint by utilizing Pareto's Optimal Conditions and by revising Samuleson's Conditions for public goods($P_s$ and $P_d$) results in the optimum pattern of SOC investment. The following are important implications from the analysis. First, rather than the pursue social equity, SOC investment is to resolve the issue of efficiency to activate the regional economy. Second, the marginal rate of transformation (MRT) between $P_s$ and $P_d$ in the region is to play a significant role in structuring SOC investment plant of local government for social welfare maximization. Third, the optimal SOC investment policy based on this regional economy but also to generate the enhancement of soical amenities of the residents.

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Optimal Particle Swarm Based Placement and Sizing of Static Synchronous Series Compensator to Maximize Social Welfare

  • Hajforoosh, Somayeh;Nabavi, Seyed M.H.;Masoum, Mohammad A.S.
    • Journal of Electrical Engineering and Technology
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    • v.7 no.4
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    • pp.501-512
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    • 2012
  • Social welfare maximization in a double-sided auction market is performed by implementing an aggregation-based particle swarm optimization (CAPSO) algorithm for optimal placement and sizing of one Static Synchronous Series Compensator (SSSC) device. Dallied simulation results (without/with line flow constraints and without/with SSSC) are generated to demonstrate the impact of SSSC on the congestion levels of the modified IEEE 14-bus test system. The proposed CAPSO algorithm employs conventional quadratic smooth and augmented quadratic nonsmooth generator cost curves with sine components to improve the accurate of the model by incorporating the valve loading effects. CAPSO also employs quadratic smooth consumer benefit functions. The proposed approach relies on particle swarm optimization to capture the near-optimal GenCos and DisCos, as well as the location and rating of SSSC while the Newton based load flow solution minimizes the mismatch equations. Simulation results of the proposed CAPSO algorithm are compared to solutions obtained by sequential quadratic programming (SQP) and a recently implemented Fuzzy based genetic algorithm (Fuzzy-GA). The main contributions are inclusion of customer benefit in the congestion management objective function, consideration of nonsmooth generator characteristics and the utilization of a coordinated aggregation-based PSO for locating/sizing of SSSC.