Optimization of market processes with limitations

The book introduces the reader to the problems of designing optimal market mechanisms in systems in which many autonomous individuals compete with each other. The second edition of the book has been significantly revised and supplemented to increase the clarity of the arguments and provide useful knowledge at a basic level as early as possible. The parametric market model developed by the author takes into account the turnover of many goods with various resource constraints. Obtained market mechanisms can be used to effectively and fairly resolve individual resource conflicts arising in the distribution of limited goods and services. At the same time, they allow achieving high global quality of system functioning. The last chapters of the book present the possibilities of using the developed methodology to manage services in the Internet and to improve the competitiveness and decentralization of the electricity market.

The book is intended for a relatively wide range of recipients: for the academic environment, including students of IT, technical and management majors, for specialists, employees of institutions operating on the electricity market, as well as Readers wishing to deepen their knowledge of market mechanisms in areas of application such as electronic commerce, telecommunications and teleinformatics, environmental protection, or markets for comprehensive services offered in packages.

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Author

Eugeniusz Toczyłowski is a professor at the Warsaw University of Technology. Currently, he manages the Operations Research and Management Systems Department at the Faculty of Electronics and Information Technology of the Warsaw University of Technology and is the head of the Specialization in Information and Decision Systems in the field of Information Technology. His scientific interests mainly concern the development of operational research methodologies, including the analysis and use of structural features of complex decision problems. He deals with m.in. development of structural methods of optimization, including decomposition and aggregation techniques. Areas of research include the issues of designing information systems for production and distribution management, flexible study systems and distribution of resources in distributed systems using market mechanisms.
E-mail: E.Toczylowski@ia.pw.edu.pl

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Table of Contents

Preface

1. Basics of goods turnover in systems

1.1. Objects of trade
1.2. Transactions in the market
1.3. Systems management in market conditions
1.4. Features and market structures
1.5. Types of auctions
1.6. Markets of bilateral contracts
1.7. Market process management
1.8. The basic trading model on the stock market
1.9. Generalized models of the single-commodity trade

2. Basics of integrated multiple-trade

2.1. Linear integrated model of multiple-trade
2.2. Properties of the linear rotation model
2.3. Conditions for the implementation of accepted offers
2.4. Optimization of turnover and flow of goods in the network
2.5. Commodity trading in the network with losses
2.6. The use of a multi-branded model on stock exchanges
2.7. Modifications of the linear multifaceted commodity trading model
2.8. Monotonous scheduling of multi-merchandise offers

3. Designing market mechanisms

3.1. Models of the market game
3.2. Principles of designing market mechanisms
3.3. Properties of basic types of auctions and exchanges
3.4. Quality requirements set for market mechanisms
3.5. Implementation of promising tasks of sustainable development

4. Parametric model of goods turnover

4.1. Designing a parametric market mechanism
4.2. Ways of parameterization of the market mechanism
4.3. Systemic costs of market balancing
4.4. Optimization of the cost of equitable balancing
4.5. Examples of balancing the market with restrictions
4.6. Simultaneous quantitative and valuable balancing of the market
4.7. Conditions for parametric consistency of motivation

5th Integrated turnover of many goods with restrictions

5.1. Rotation optimization with linear restrictions
5.2. Value balancing with linear restrictions
5.3. Systemic costs of balancing a multi-brand market
5.4. Optimization of the balance of value
5.5. Managing the costs of group restrictions

6. Decentralized market structures

6.1. Market decentralization
6.2. Local market in a decentralized structure
6.3. Example of marketing optimization on the local market
6.4. Balancing the local market with extortions
6.5. Integration of single-commodity markets
6.6. Integration of multifascial local markets

7. A multi-commodity trading model for services on the Internet

7.1. Principles of operation and tariffation of services on the Internet
7.2. The need for a new Internet network architecture
7.3. Ways of concluding SLA contracts
7.4. A multi-pattern model of bilateral network services
7.5. Determining the implementation of specific offers
7.6. Balancing offers on the network services market
7.7. A parametric model for balancing qualitative services
7.8. An example of balancing network services
7.9. Properties of a multi-pattern service balancing model

8. Optimization on the electricity market

8.1. Operation of the power system in market conditions
8.2. Basic structures of the electricity market
8.3. Theoretical trading models on the energy market
8.4. Subjective and objective structure of the market
8.5. Balancing functions and mechanisms on the energy market
8.6. Programming on real time balancing markets
8.7. Programming JG with network restrictions
8.8. Parametric models for multiple-phase balancing
8.9. Valuation of compliance costs
8.10. Value balancing and transaction settlement
8.11. Prospects for development and decentralization of the energy market in Poland

9. Literature

Index