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Stochastic Dynamic Programming for Natural Gas Pricing in the Turkish Energy Market
Gamze Ogcu Kaya and Özlem Cosgun

The recent rise in world oil prices and the consequent runup in gasoline prices provide a useful analog for illustrating the role of dynamic pricing in electricity markets. In this study, we consider a dynamic pricing problem in one of the private energy companies in Turkey that provides electricity to industrial enterprises. The results show that the dynamic pricing policy for natural gas provides more revenue than the policy applied currently.

Keywords: Dynamic programming, economics, electricity, energy, natural gas pricing, Turkey

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