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We design an optimal contract between a demand response aggregator (DRA) and power grid customers for incentive-based demand response. We consider a setting in which the customers are asked to reduce their electricity consumption by the DRA…

Optimization and Control · Mathematics 2017-01-17 Donya Ghavidel Dobakhshari , Vijay Gupta

Adaptive structures are equipped with sensors and actuators to actively counteract external loads such as wind. This can significantly reduce resource consumption and emissions during the life cycle compared to conventional structures. A…

Systems and Control · Electrical Eng. & Systems 2023-12-11 Manuel Schaller , Amelie Zeller , Michael Böhm , Oliver Sawodny , Cristina Tarín , Karl Worthmann

In this paper, we address three Principal--Agent problems in a moral hazard context and show that they are connected. We start by studying the problem of Principal with multiple Agents in cooperation. The term cooperation is manifested here…

Optimization and Control · Mathematics 2024-10-23 Mao Fabrice Djete

We study a bilevel \emph{max-max} optimization framework for principal-agent contract design, in which a principal chooses incentives to maximize utility while anticipating the agent's best response. This problem, central to moral hazard…

Machine Learning · Computer Science 2025-10-27 Tomer Galanti , Aarya Bookseller , Korok Ray

In this paper, we address a key issue of designing architectures and algorithms which generate optimal demand response in a decentralized manner for a smart-grid consisting of several stochastic renewables and dynamic loads. By optimal…

Systems and Control · Computer Science 2021-04-27 Rahul Singh , Ke Ma , Anupam Thatte , P. R. Kumar , Le Xie

The consensus control with optimal cost remains major challenging although consensus control problems have been well studied in recent years. In this paper, we study the consensus control of multi-agent system associated with a given cost…

Optimization and Control · Mathematics 2018-03-28 Juanjuan Xu , Huanshui Zhang

In this work we investigate the inefficiency of the electricity system with strategic agents. Specifically, we prove that without a proper control the total demand of an inefficient system is at most twice the total demand of the optimal…

Computer Science and Game Theory · Computer Science 2015-09-10 Carlos Barreto , Eduardo Mojica-Nava , Nicanor Quijano

The optimal control for mobile agents is an important and challenging issue. Recent work shows that using randomized mechanism in agents' control can make the state unpredictable, and thus improve the security of agents. However, the…

Systems and Control · Electrical Eng. & Systems 2022-09-05 Chendi Qu , Jianping He , Jialun Li

Automated synthesis of correct-by-construction controllers for autonomous systems is crucial for their deployment in safety-critical scenarios. Such autonomous systems are naturally modeled as stochastic dynamical models. The general…

Systems and Control · Electrical Eng. & Systems 2023-11-17 Thom Badings , Nils Jansen , Licio Romao , Alessandro Abate

In a continuous-time setting where a risk-averse agent controls the drift of an output process driven by a Brownian motion, optimal contracts are linear in the terminal output; this result is well-known in a setting with moral hazard and…

Portfolio Management · Quantitative Finance 2018-07-31 N. Packham

This paper considers the problem of regulating a dynamical system to equilibria that are defined as solutions of an input- and state-constrained optimization problem. To solve this regulation task, we design a state feedback controller…

Systems and Control · Electrical Eng. & Systems 2023-12-14 Yiting Chen , Liliaokeawawa Cothren , Jorge Cortes , Emiliano Dall'Anese

This paper considers optimal control of dynamical systems which are represented by nonlinear stochastic differential equations. It is well-known that the optimal control policy for this problem can be obtained as a function of a value…

Robotics · Computer Science 2014-05-30 Oktay Arslan , Evangelos Theodorou , Panagiotis Tsiotras

We use the recently developed probabilistic analysis of mean field games with finitely many states in the weak formulation, to set-up a principal / agent contract theory model where the principal faces a large population of agents…

Probability · Mathematics 2018-08-27 Rene Carmona , Peiqi Wang

We study the principal-agent problem with a third party that we call social planner, whose responsibility is to reconcile the conflicts of interest between the two players and induce socially optimal outcome in terms of some given social…

Computer Science and Game Theory · Computer Science 2024-11-07 Shiyun Lin , Zhihua Zhang

We propose an optimal solution to a deterministic dynamic assignment problem by leveraging connections to the theory of discrete optimal transport to convert the combinatorial assignment problem into a tractable linear program. We seek to…

Multiagent Systems · Computer Science 2019-10-25 Koray G. Kachar , Alex A. Gorodetsky

Despite the success of demand response programs in retail electricity markets in reducing average consumption, the random responsiveness of consumers to price event makes their efficiency questionable to achieve the flexibility needed for…

Optimization and Control · Mathematics 2019-05-28 René Aïd , Dylan Possamaï , Nizar Touzi

This work considers a repeated principal-agent bandit game, where the principal can only interact with her environment through the agent. The principal and the agent have misaligned objectives and the choice of action is only left to the…

This paper studies delegation in a model of discrete choice. In the delegation problem, an uninformed principal must consult an informed agent to make a decision. Both the agent and principal have preferences over the decided-upon action…

Computer Science and Game Theory · Computer Science 2024-06-25 Ali Khodabakhsh , Emmanouil Pountourakis , Samuel Taggart

We consider a Bolza-type optimal control problem for a dynamical system described by a fractional differential equation with the Caputo derivative of an order $\alpha \in (0, 1)$. The value of this problem is introduced as a functional in a…

Optimization and Control · Mathematics 2019-08-06 Mikhail I. Gomoyunov

In this paper we formulate a contract design problem where a primary license holder wishes to profit from its excess spectrum capacity by selling it to potential secondary users/buyers. It needs to determine how to optimally price the…

Computational Engineering, Finance, and Science · Computer Science 2012-07-30 Shang-Pin Sheng , Mingyan Liu