A Co-evolutionary Approach to Analyzing the Impact of Rationality on the Italian Electricity Market

We analyze the behavior of the Italian electricity market with an agent-based model. In particular, we are interested in testing the assumption that the market participants are fully rational in the economical sense. To this end, we suppose that while constructing its strategy the agent takes into account all the possible strategies the other (competitors) agents might adopt in the future, not only their last strategies, as it is done in the literature. This motivates us to propose a coevolutionary approach to strategy optimization, which better reflects the way actual decision makers behave in reality. The experiments carried out corroborate our hypothesis and show an improvement in the results compared to the literature.