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Feedback loops: the effect of external agents on utility performance
16
Citations
0
References
1982
Year
Agent Decision-makingBehavioral Decision MakingBusiness AnalyticsAgent-based SystemPower MarketManagementExperimental EconomicsEconomic AnalysisFeedback LoopDecision MakingMechanism DesignEnergy RegulationQuantitative ManagementElectricity SupplyEconomicsExternal AgentsStrategyMulti-agent Mechanism DesignStrategic ManagementMarketingElectricity MarketBehavioral AgentBehavioral EconomicsEnergy PolicyBusinessFinancial PerformanceExternal EnvironmentBusiness StrategyExternal Entities
A strategic-planning model developed to represent the responses of external entities to utility actions through mechanisms commonly referred to as feedback loops is described in this article. The model has been used by the authors and others to test the effects of the reaction of external entities to an electric utility's decision making. The entities were specifically consumers, regulators, and investors. The general conclusion of the study was that the inclusion of reactions by these external forces in the model affects utility performance considerably. In addition, it helps to provide a framework for understanding financial performance in the context of the utility as a power-producing business entity. 5 references, 10 figures, 3 tables.