## Last essential steps

Regardless, whether you have a conceptual model with complicated interactions hidden in the mathematical equations of your solution or a numerical model with a gazillion numbers, you will need to …

## Our futures

You were not the only one tasked to design a policy system for our example market. We did the same. So watch how Frank Krysiak is designing a system focused …

## Getting ready for the future

Now that you have learned about all the elements needed to design sophisticated models, it is time to put those pieces together to have a look at possible futures. Let’s …

## Let the computer do the work II: equilibriums

While optimization models are frequently used for techno-economic scenario simulations and system assessments, equilibrium models are more common for analysing detailed economic market interaction and dynamics. They are coded using …

## Let the computer do the work I: optimizations

Modern computer capacities and advances in modeling software and algorithms make numerical modeling much more accessible than a few decades ago. Nevertheless, basic understandings of the mathematical model structure and …

## What data is required to run a model?

Data plays a crucial role in many models, especially large-scale numerical scenario models. Getting the data needed to run your model is often the most frustrating part of the whole …

## Putting the pieces together

Let’s start our last course week by shortly reviewing how we started in the first week. We explained that modeling can be structured into four main phases: In the last …

## Wrap up: perfect to imperfect

This has been a tough week with some complex mathematics and economics. So let’s recap the most important take home messages for this week. First, we have examined more detailed …

## Oligopoly model: the mathematics

Let’s examine how the oligopoly model is designed. It closely follows the monopoly model with respect to its general setup: we assume that coal-based producers have market power and the …

## From one to many

Now that we have introduced monopolies to our modeling world we can go one step further by introducing oligopolies. For many markets perfect competition is more of a theoretic benchmark. …

## Monopoly model: the mathematics II

Now that you have seen your first monopoly model let’s use the setting of our perfect competition example to analyze how such a model can be designed as optimization and …

## Monopoly model: the mathematics I

Let’s examine the model in somewhat more detail. In this model, we assume that one firm has market power (the coal-based producer), whereas the other firms behave competitively. They form …

## How Do Monopolies Distort Abatement Policy Design?

Some might assume that firms behave competitively and take prices as given and do not try to manipulate markets to their advantage. Unfortunately, this is a rather optimistic view of …

## From perfect to imperfect

The model elements we discussed so far were focused on representing perfect systems: companies take market prices as given, policies are easy to implement, and we possess perfect information on …

## Perfect competition as example

In the last step we took a dive into the underlying mathematics of our models. To get a better understanding of what this means for your model design, we now …