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Wholesale price contracts are known to be associated with double marginalization effects, which prevents supply chains from achieving their true market share. In a dynamic setting under information asymmetry, these inefficiencies manifest…

Optimization and Control · Mathematics 2025-05-13 Madhu Dhiman , Atul Maurya , Veeraruna Kavitha , Priyank Sinha

We consider tit-for-tat dynamics in production markets, where there is a set of $n$ players connected via a weighted graph. Each player $i$ can produce an eponymous good using its linear production function, given as input various amounts…

Computer Science and Game Theory · Computer Science 2024-01-17 Simina Brânzei

This paper studies a crucial problem in power system balancing control, i.e., the multi-time slot economic dispatch (MTSED) problem, for power grids with substantial renewables, synchronous generators (SGs), and energy storage devices…

Systems and Control · Electrical Eng. & Systems 2023-10-11 Luwei Yang , Tao Liu , David J. Hill

This paper investigates the network load balancing problem in data centers (DCs) where multiple load balancers (LBs) are deployed, using the multi-agent reinforcement learning (MARL) framework. The challenges of this problem consist of the…

Artificial Intelligence · Computer Science 2022-10-17 Zhiyuan Yao , Zihan Ding

The increasing penetration of renewable generations, along with the deregulation and marketization of power industry, promotes the transformation of power market operation paradigms. The optimal bidding strategy and dispatching methodology…

Machine Learning · Computer Science 2023-05-15 Ziqing Zhu , Ze Hu , Ka Wing Chan , Siqi Bu , Bin Zhou , Shiwei Xia

Market makers play an important role in providing liquidity to markets by continuously quoting prices at which they are willing to buy and sell, and managing inventory risk. In this paper, we build a multi-agent simulation of a dealer…

Trading and Market Microstructure · Quantitative Finance 2019-11-15 Sumitra Ganesh , Nelson Vadori , Mengda Xu , Hua Zheng , Prashant Reddy , Manuela Veloso

This paper studies an optimal allocation of demand response (DR) provisions among strategic photovoltaic (PV) prosumers, through third-party DR providers which operate within the territory of the regulated distribution utility. A game…

Systems and Control · Electrical Eng. & Systems 2021-10-05 Sayyid Mohssen Sajjadi , Meng Wu

We study a game between liquidity provider and liquidity taker agents interacting in an over-the-counter market, for which the typical example is foreign exchange. We show how a suitable design of parameterized families of reward functions…

Multiagent Systems · Computer Science 2023-08-02 Nelson Vadori , Leo Ardon , Sumitra Ganesh , Thomas Spooner , Selim Amrouni , Jared Vann , Mengda Xu , Zeyu Zheng , Tucker Balch , Manuela Veloso

Continuous integration of renewable energy sources into power networks is causing a paradigm shift in energy generation and distribution with regards to trading and control; the intermittent nature of renewable sources affects pricing of…

Systems and Control · Electrical Eng. & Systems 2022-01-19 Pablo R. Baldivieso Monasterios , Nandor Verba , Euan A Morris , Thomas Morstyn , George. C , . Konstantopoulos , Elena Gaura , Stephen McArthur

This two-part paper develops a paradigmatic theory and detailed methods of the joint electricity market design using reinforcement-learning (RL)-based simulation. In Part 2, this theory is further demonstrated by elaborating detailed…

Computer Science and Game Theory · Computer Science 2023-05-15 Ziqing Zhu , Siqi Bu , Ka Wing Chan , Bin Zhou , Shiwei Xia

Since the 1990s, widespread introduction of central (wholesale) electricity markets has been seen across multiple continents, driven by the search for efficient operation of the power grid through competition. The increase of renewables has…

Systems and Control · Electrical Eng. & Systems 2025-10-15 Pål Forr Austnes , Matthieu Jacobs , Lu Wang , Mario Paolone

This paper conducts an empirical investigation into the effects of Designated Market Makers (DMMs) on key market quality indicators, such as liquidity, bid-ask spreads, and order fulfillment ratios. Through agent-based simulations, this…

Trading and Market Microstructure · Quantitative Finance 2024-09-26 Cong Zhou

Many applications -- including power systems, robotics, and economics -- involve a dynamical system interacting with a stochastic and hard-to-model environment. We adopt a reinforcement learning approach to control such systems.…

Optimization and Control · Mathematics 2025-08-26 Abed AlRahman Al Makdah , Oliver Kosut , Lalitha Sankar , Shaofeng Zou

Although the specific structures of electricity markets are diverse around the world, they were all conceived on the premise of predictable, controllable generation with nonnegligible marginal costs. Recent changes, specifically, the…

Computer Science and Game Theory · Computer Science 2020-12-10 Orcun Karaca

Extreme events jeopardize power network operations, causing beyond-design failures and massive supply interruptions. Existing market designs fail to internalize and systematically assess the risk of extreme and rare events. Efficiently…

Systems and Control · Electrical Eng. & Systems 2025-01-03 Tomas Tapia , Zhirui Liang , Charalambos Konstantinou , Yury Dvorkin

In this paper, we examine in an abstract framework, how a tradeoff between efficiency and robustness arises in different dynamic oligopolistic market architectures. We consider a market in which there is a monopolistic resource provider and…

Systems and Control · Computer Science 2013-10-02 Qingqing Huang , Mardavij Roozbehani , Munther A Dahleh

New larger and more diverse wireless markets have emerged. Modelling them can be challenging due to various business and network aspects. Existing models of wireless markets are either microscopic, focusing on a specific technical aspect…

Networking and Internet Architecture · Computer Science 2019-01-10 Georgios Fortetsanakis , Maria Papadopouli

Competition has been introduced in the electricity markets with the goal of reducing prices and improving efficiency. The basic idea which stays behind this choice is that, in competitive markets, a greater quantity of the good is exchanged…

Physics and Society · Physics 2009-11-11 Ettore Bompard , Yuchao Ma , Elena Ragazzi

Demand side management (DSM) is a key solution for reducing the peak-time power consumption in smart grids. To provide incentives for consumers to shift their consumption to off-peak times, the utility company charges consumers differential…

Systems and Control · Computer Science 2013-11-11 Linqi Song , Yuanzhang Xiao , Mihaela van der Schaar

Herding, where investors imitate others' decisions rather than relying on their own analysis, is a prevalent phenomenon in financial markets. Excessive herding distorts rational decisions, amplifies volatility, and can be exploited by…

Mathematical Finance · Quantitative Finance 2026-04-14 Huisheng Wang , H. Vicky Zhao
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