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assume-framework / assume

ASSUME - Agent-based Simulation for Studying and Understanding Market Evolution
https://assume.readthedocs.io
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Clarify usage of fixed_cost, variable_cost and relative_margin #277

Closed maurerle closed 6 months ago

maurerle commented 7 months ago

As marginal cost is the change in the total cost that arises when the quantity produced is incremented by one unit - it should not include fixed_costs which must be payed every hour.

Variable cost as suggested here covers the case of having an additional cost on top of the price calculation, which is respected in the marginal cost - this could also be seen as runtime cost in €/MW of the unit

Additionally, it would be good to have a relative margin on the price, which should be added after adding the fixed_cost/variable_cost, by multiplying the cost.

We should document that and make sure that this works as expected :)

_Originally posted by @maurerle in https://github.com/assume-framework/assume/pull/269#discussion_r1466133854_

maurerle commented 6 months ago

@nick-harder and I discussed to remove the fixed_cost (which is not included in marginal cost) and renamt the variable_cost (which is included in marginal cost) to "extra_cost".

A relative_margin would be added after marginal cost calculation and could be added in the bidding strategy and is therefore not needed.

This simplifies things a lot