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The problem of pricing utility-scale energy storage resources (ESRs) in the real-time electricity market is considered. Under a rolling-window dispatch model where the operator centrally dispatches generation and consumption under…

Systems and Control · Electrical Eng. & Systems 2021-01-26 Cong Chen , Lang Tong , Ye Guo

We propose a general two-period model where electrical vehicles (EVs) can reserve charging sessions in the day-ahead market and swap them in the real-time market. Under the model, we explore several candidate mechanisms for running the two…

Systems and Control · Electrical Eng. & Systems 2025-09-03 Pan-Yang Su , Yi Ju , Scott Moura , Shankar Sastry

In this paper we provide evidence that financial option markets for equity indices give rise to non-trivial dependency structures between its constituents. Thus, if the individual constituent distributions of an equity index are inferred…

Pricing of Securities · Quantitative Finance 2009-09-22 Alex Langnau

Real-time price signals and power generation levels (disaggregated or aggregated) are commonly made available to the public by Independent System Operators (ISOs) to promote efficiency and transparency. However, they may inadvertently…

Cryptography and Security · Computer Science 2025-03-28 Junfei Wang , Pirathayini Srikantha

A coordinated trading process is proposed as a design for an electricity market with significant uncertainty, perhaps from renewables. In this process, groups of agents propose to the system operator (SO) a contingent buy and sell trade…

Optimization and Control · Mathematics 2017-08-28 Junjie Qin , Ram Rajagopal , Pravin Varaiya

This paper introduces the Minimum Price Markov Game (MPMG), a theoretical model that reasonably approximates real-world first-price markets following the minimum price rule, such as public auctions. The goal is to provide researchers and…

Computer Science and Game Theory · Computer Science 2025-03-20 Igor Sadoune , Marcelin Joanis , Andrea Lodi

Introduction of market mechanisms in distribution systems is currently subject to extensive studies. One of the challenges facing Distribution Market Operators (DMOs) is to implement a fair and economically efficient pricing mechanism that…

Systems and Control · Computer Science 2017-02-24 Sina Parhizi , Alireza Majzoobi , Amin Khodaei

Without monetary payments, the Gibbard-Satterthwaite theorem proves that under mild requirements all truthful social choice mechanisms must be dictatorships. When payments are allowed, the Vickrey-Clarke-Groves (VCG) mechanism implements…

Computer Science and Game Theory · Computer Science 2018-04-27 Hongyao Ma , Reshef Meir , David C. Parkes

The design of energy markets is a subject of ongoing debate, particularly concerning the choice between the widely adopted Pay-as-Clear (PC) pricing mechanism and the alternative Pay-as-Bid (PB). These mechanisms determine how energy…

Computer Science and Game Theory · Computer Science 2025-07-09 Ioannis Caragiannis , Zhile Jiang , Stratis Skoulakis

We study the structure of locational marginal prices in day-ahead and real-time wholesale electricity markets. In particular, we consider the case of two North American markets and show that the price correlations contain information on the…

Statistical Finance · Quantitative Finance 2022-09-13 Tianyu Cui , Francesco Caravelli , Cozmin Ududec

A single advertisement often benefits many parties, for example, an ad for a Samsung laptop benefits Microsoft. We study this phenomenon in search advertising auctions and show that standard solutions, including the status quo ignorance of…

Computer Science and Game Theory · Computer Science 2012-09-06 Darrell Hoy , Kamal Jain , Christopher A. Wilkens

This paper examines the performance trade-offs between an introduced linear flexibility market model for congestion management and a benchmark second-order cone programming (SOCP) formulation. The linear market model incorporates voltage…

Computer Science and Game Theory · Computer Science 2021-11-04 Anibal Sanjab , Yuting Mou , Ana Virag , Kris Kessels

Local electricity markets offer a promising solution for integrating renewable energy sources and other distributed energy resources (DERs) into distribution networks. These markets enable the effective utilization of flexible resources by…

Systems and Control · Electrical Eng. & Systems 2025-06-04 Niloofar Pourghaderi , Milad Kabirifar , Payman Dehghanian

Wind energy has emerged as one of the most vital and economically viable forms of renewable energy. The integration of wind energy sources into power grids across the globe has been increasing substantially, largely due to the higher levels…

Optimization and Control · Mathematics 2024-10-16 Narin Nemati , Amin Ahmadi Kasani

Collusion and capacity withholding in electricity wholesale markets are important mechanisms of market manipulation. This study applies a refined machine learning-based cartel detection algorithm to two cartel cases in the Italian…

Econometrics · Economics 2025-12-02 Jeremy Proz , Martin Huber

Electricity markets often utilize the DC approximation of the AC power flow equations to facilitate solving an otherwise complex nonconvex optimization problem. These DC power flow equations have analogies to DC circuit laws such as…

Optimization and Control · Mathematics 2024-03-29 Kyri Baker , Harsha Gangammanavar

Locational Marginal Price (LMP) is a dual variable associated with supply-demand matching and represents the cost of delivering power to a particular location if the load at that location increases. In recent times it become more volatile…

Optimization and Control · Mathematics 2018-11-07 Shantanu Chakraborty , Remco Verzijlbergh , Milos Cvetkovic , Kyri Baker , Zofia Lukszo

We study the design of strategy-proof and efficient mechanisms satisfying participation constraints in the job-matching problem. Each firm can hire multiple workers and each worker can be employed at only one firm. While firm utilities over…

Theoretical Economics · Economics 2026-05-05 Sushil Bikhchandani , Debasis Mishra

As distribution systems move towards being more actively managed there is increased potential for regional markets and the application of locational marginal prices (LMPs) to capture spatial variation in the marginal cost of electricity at…

Computational Engineering, Finance, and Science · Computer Science 2019-06-06 Calum Edmunds , Waqquas Bukhsh , Simon Gill , Stuart Galloway

Pricing multi-interval economic dispatch of electric power under operational uncertainty is considered in this two-part paper. Part I investigates dispatch-following incentives of profit-maximizing generators and shows that, under mild…

Systems and Control · Electrical Eng. & Systems 2021-08-13 Ye Guo , Cong Chen , Lang Tong