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In this paper we formulate the fixed budget resource allocation game to understand the performance of a distributed market-based resource allocation system. Multiple users decide how to distribute their budget (bids) among multiple machines…

Distributed, Parallel, and Cluster Computing · Computer Science 2007-05-23 Michal Feldman , Kevin Lai , Li Zhang

We study deterministic monopoly pricing under partial knowledge of the market, where the seller has access only to summary statistics of the valuation distribution, such as the mean, dispersion, and maximum value. Using tools from…

Optimization and Control · Mathematics 2025-09-09 Tim S. G. van Eck , Pieter Kleer , Johan S. H. van Leeuwaarden

Mechanism design is studied for aggregating renewable power producers (RPPs) in a two-settlement power market. Employing an indirect mechanism design framework, a payoff allocation mechanism (PAM) is derived from the competitive equilibrium…

Computer Science and Game Theory · Computer Science 2018-10-09 Hossein Khazaei , Yue Zhao

The problem of heat system pricing is considered. A direct extension of locational marginal prices (LMP) in electricity markets to heat systems may lead to revenue inadequate issues. The underlying reason for such a problem is that, unlike…

Systems and Control · Electrical Eng. & Systems 2022-08-18 Xinyi Yi , Ye Guo , Hongbin Sun

In recent years, there has been a significant focus on advancing the next generation of power systems. Despite these efforts, persistent challenges revolve around addressing the operational impact of uncertainty on predicted data,…

Optimization and Control · Mathematics 2024-03-15 Hien Thanh Doan , Minsoo Kim , Keunju Song , Hongseok Kim

The purpose of Inventory Pricing is to bid the right prices to online ad opportunities, which is crucial for a Demand-Side Platform (DSP) to win advertising auctions in Real-Time Bidding (RTB). In the planning stage, advertisers need the…

Machine Learning · Computer Science 2021-10-27 Xu Li , Michelle Ma Zhang , Youjun Tong , Zhenya Wang

Modern online platforms such as marketplaces, ride-hailing services, and food-delivery systems serve a dual role: they are both markets where participants interact and transact, and operators that design and govern how these markets…

Computer Science and Game Theory · Computer Science 2026-05-11 Gary Qiurui Ma

Pricing decisions are often made when market information is still poor. In turn, existing theoretical models often reason about the response of optimal prices to changing market characteristics without exploiting all available information…

Optimization and Control · Mathematics 2021-07-19 Stefanos Leonardos , Costis Melolidakis , Constandina Koki

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

Peer-to-peer (P2P) energy trading is becoming central to modern distribution systems as rooftop PV and home energy management systems become pervasive, yet most existing market and reinforcement learning designs emphasize efficiency or…

Systems and Control · Electrical Eng. & Systems 2025-08-27 Shrenik Jadhav , Birva Sevak , Srijita Das , Akhtar Hussain , Wencong Su , Van-Hai Bui

The paper develops a decentralized resource allocation mechanism for allocating divisible goods with capacity constraints to non-price-taking agents with general concave utilities. The proposed mechanism is always budget balanced,…

Optimization and Control · Mathematics 2012-02-10 Ali Kakhbod

This paper introduces a model for coordinating prosumers with heterogeneous distributed energy resources (DERs), participating in the local energy market (LEM) that interacts with the market-clearing entity. The proposed LEM scheme utilizes…

The electricity industry has been one of the first to face technological changes motivated by sustainability concerns. Whilst efficiency aspects of market design have tended to focus upon market power concerns, the new policy challenges…

Theoretical Economics · Economics 2023-04-06 Lamia Varawala , Mohammad Reza Hesamzadeh , György Dán , Derek Bunn , Juan Rosellón

The diversity of prosumers' resources in energy communities can provide significant technical and economic benefits to both prosumers and the distribution system operator (DSO). To maximize these benefits, a coordination framework is…

Systems and Control · Electrical Eng. & Systems 2025-07-08 Milad Kabirifar , Biswarup Mukherjee , S. Gokul Krishnan , Charalambos Konstantinou , Subhash Lakshminarayana

Market making refers to a form of trading in financial markets characterized by passive orders which add liquidity to limit order books. Market makers are important for the proper functioning of financial markets worldwide. Given the…

Mathematical Finance · Quantitative Finance 2024-07-24 Timothy DeLise

We consider non-standard Markov Decision Processes (MDPs) where the target function is not only a simple expectation of the accumulated reward. Instead, we consider rather general functionals of the joint distribution of terminal state and…

Optimization and Control · Mathematics 2025-10-16 Nicole Bäuerle , Tamara Göll , Anna Jaśkiewicz

This thesis presents the results of a comprehensive research project focused on applying Reinforcement Learning (RL) to the problem of market making in financial markets. Market makers (MMs) play a fundamental role in providing liquidity,…

Machine Learning · Computer Science 2025-07-28 Óscar Fernández Vicente

In this paper, I introduce a profit-maximizing centralized marketplace into a decentralized market with search frictions. Agents choose between the centralized marketplace and the decentralized bilateral trade. I characterize the optimal…

Theoretical Economics · Economics 2021-11-29 Berk Idem

The intermittent nature of renewable energy resources creates extra challenges in the operation and control of the electricity grid. Demand flexibility markets can help in dealing with these challenges by introducing incentives for…

Computer Science and Game Theory · Computer Science 2021-06-29 Khaled Abedrabboh , Luluwah Al-Fagih

This paper evaluates market equilibrium under different pricing mechanisms in a two-settlement 100%-renewables electricity market. Given general probability distributions of renewable energy, we establish game-theoretical models to analyze…

Systems and Control · Electrical Eng. & Systems 2023-05-23 Dongwei Zhao , Audun Botterud , Marija Ilic