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To enable an efficient electricity market, a good pricing scheme is of vital importance. Among many practical schemes, customized pricing is commonly believed to be able to best exploit the flexibility in the demand side. However, due to…

Computational Engineering, Finance, and Science · Computer Science 2019-12-13 Jingshi Cui , Haoxiang Wang , Chenye Wu , Yang Yu

In this paper we present a theoretical framework for determining dynamic ask and bid prices of derivatives using the theory of dynamic coherent acceptability indices in discrete time. We prove a version of the First Fundamental Theorem of…

Risk Management · Quantitative Finance 2013-06-13 Tomasz R. Bielecki , Igor Cialenco , Ismail Iyigunler , Rodrigo Rodriguez

As electricity consumption grows, reducing peak demand--the maximum load on the grid--has become critical for preventing infrastructure strain and blackouts. Pricing mechanisms that incentivize consumers with flexible loads to shift…

Computer Science and Game Theory · Computer Science 2025-11-17 Vade Shah , Jason R. Marden

This paper presents a method for load balancing and dynamic pricing in electric vehicle (EV) charging networks, utilizing reinforcement learning (RL) to enhance network performance. The proposed framework integrates a pre-trained graph…

Systems and Control · Electrical Eng. & Systems 2025-03-11 Hesam Mosalli , Saba Sanami , Yu Yang , Hen-Geul Yeh , Amir G. Aghdam

We study competitive dynamic pricing among multiple sellers, motivated by the rise of large-scale experimentation and algorithmic pricing in retail and online marketplaces. Sellers repeatedly set prices using simple learning rules and…

Computer Science and Game Theory · Computer Science 2026-05-25 Bar Light , Wenyu Wang

Over the past few years, ride-sharing has emerged as an effective way to relieve traffic congestion. A key problem for these platforms is to come up with a revenue-optimal (or GMV-optimal) pricing scheme and an induced vehicle dispatching…

Systems and Control · Computer Science 2018-03-02 Mengjing Chen , Weiran Shen , Pingzhong Tang , Song Zuo

The marginal price of electricity traditionally depends on the dual variables associated with relevant optimization goals. Particularly, in the optimal power flow realm, prices represent the cost of supplying an additional unit of power at…

Optimization and Control · Mathematics 2016-06-29 Kyri Baker

We propose an algorithm based on online convex optimization for controlling discrete-time linear dynamical systems. The algorithm is data-driven, i.e., does not require a model of the system, and is able to handle a priori unknown and…

Optimization and Control · Mathematics 2022-11-17 Marko Nonhoff , Matthias A. Müller

We propose a novel machine learning approach for probabilistic forecasting of hourly day-ahead electricity prices. In contrast with the recent advances in data-rich probabilistic forecasting, which approximates distributions with few…

General Economics · Economics 2025-07-04 Jozef Barunik , Lubos Hanus

We propose a data-driven online convex optimization algorithm for controlling dynamical systems. In particular, the control scheme makes use of an initially measured input-output trajectory and behavioral systems theory which enable it to…

Optimization and Control · Mathematics 2021-11-03 Marko Nonhoff , Matthias A. Müller

New pricing policies are emerging where cloud providers charge resource provisioning based on the allocated CPU frequencies. As a result, resources are offered to users as combinations of different performance levels and prices which can be…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-09-18 Dražen Lučanin , Ilia Pietri , Simon Holmbacka , Ivona Brandic , Johan Lilius , Rizos Sakellariou

We study a scheduling problem arising in demand response management in smart grid. Consumers send in power requests with a flexible feasible time interval during which their requests can be served. The grid controller, upon receiving power…

Data Structures and Algorithms · Computer Science 2017-08-07 Fu-Hong Liu , Hsiang-Hsuan Liu , Prudence W. H. Wong

Zonal pricing is a well-suited mechanism to incentivize grid-supporting behavior of profit-maximizing producers and consumers operating on a large-scale power system. In zonal electricity markets, local system operators create individual…

Optimization and Control · Mathematics 2021-06-22 Lukas Kölsch , Lena Zellmann , Rishabh Vyas , Martin Pfeifer , Sören Hohmann

We consider a firm that sells products over $T$ periods without knowing the demand function. The firm sequentially sets prices to earn revenue and to learn the underlying demand function simultaneously. A natural heuristic for this problem,…

Machine Learning · Statistics 2016-04-27 Sheng Qiang , Mohsen Bayati

Due to the centralization of charging stations (CSs), CSs are organized as charging station alliances (CSAs) in the commercial competition. Under this situation, this paper studies the profit-oriented dynamic pricing strategy of CSAs. As…

Systems and Control · Electrical Eng. & Systems 2024-08-14 Zeyu Liu , Yun Zhou , Donghan Feng , Shaolun Xu , Yin Yi , Hengjie Li , Haojing Wang

Automated Market Makers (AMMs) are emerging as a popular decentralised trading platform. In this work, we determine the optimal dynamic fees in a constant function market maker. We find approximate closed-form solutions to the control…

Trading and Market Microstructure · Quantitative Finance 2025-06-26 Leonardo Baggiani , Martin Herdegen , Leandro Sánchez-Betancourt

The paper proposes a framework for modeling and analysis of the dynamics of supply, demand, and clearing prices in power system with real-time retail pricing and information asymmetry. Real-time retail pricing is characterized by passing on…

Systems and Control · Computer Science 2011-06-08 Mardavij Roozbehani , Munther A Dahleh , Sanjoy K Mitter

The transition from the Internal Combustion Engine Vehicles (ICEVs) to the Electric Vehicles (EVs) is globally recommended to combat the unfavourable environmental conditions caused by reliance on fossil fuels. However, it has been…

Systems and Control · Electrical Eng. & Systems 2025-11-11 Leloko J. Lepolesa , Kayode E. Adetunji , Khmaies Ouahada , Zhenqing Liu , Ling Cheng

Demand-side management (DSM) programs introduce complex pricing, requiring advanced control for cost minimization. Model Predictive Control (MPC) offers a solution but its performance hinges on appropriate hyperparameter tuning. We propose…

Systems and Control · Electrical Eng. & Systems 2026-05-05 Jiarui Yu , Jicheng Shi , Wenjie Xu , Colin N. Jones

Renewable sources are taking center stage in electricity generation. However, matching supply with demand in a renewable-rich system is a difficult task due to the intermittent nature of renewable resources (wind, solar, etc.). As a result,…

Systems and Control · Electrical Eng. & Systems 2020-09-02 Haris Mansoor , Naveed Arshad