Resonating models for the electric power market

Phys Rev E Stat Nonlin Soft Matter Phys. 2007 Nov;76(5 Pt 2):056116. doi: 10.1103/PhysRevE.76.056116. Epub 2007 Nov 21.


This paper describes the economic phenomenon of price spiking in electric power markets and introduces an alternative way to model it. A stochastic FitzHugh-Nagumo dynamics in a special regime is proposed as a basic model for the power market, and an extension of the FitzHugh-Nagumo system is introduced to improve the statistical features of the basic model. Ideas from stochastic and coherence resonance are used to discuss the models.