Dear Dr. Zimmerman, Could please let know according to the below post how " cost minimization is equivalent to loss minimization"? Could you please explain?
Best Wishes ---------- Forwarded message ---------- From: Ray Zimmerman <[email protected]> Date: Wed, May 4, 2011 at 3:17 PM Subject: Re: Question about objective function To: Dailan Xu <[email protected]> The purpose of runmarket is to implement a standard auction market such as those used by the typical ISO. The objective of minimization of cost or maximization of social welfare is consistent with such markets. Now, if you want to minimize losses using runmarket, simply put in equal offer prices for all generators. Then cost minimization is equivalent to loss minimization. -- Ray Zimmerman Senior Research Associate 211 Warren Hall, Cornell University, Ithaca, NY 14853 phone: (607) 255-9645 On May 4, 2011, at 8:15 AM, Dailan Xu wrote: > Dear Prof. Zimmerman > > Could you please let me know why in the runmarket you have chosen the objective function as minimization of cost or maximization social welfare? what is the reason? > > For example, why you haven't chosen loss or other objectives? > > Best Regards > > D. Xu >
