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We study a demand response problem from utility (also referred to as operator)'s perspective with realistic settings, in which the utility faces uncertainty and limited communication. Specifically, the utility does not know the cost…

Optimization and Control · Mathematics 2017-08-11 Pan Li , Hao Wang , Baosen Zhang

We consider a seller who offers services to a buyer with multi-unit demand. Prior to the realization of demand, the buyer receives a noisy signal of their future demand, and the seller can design contracts based on the reported value of…

Theoretical Economics · Economics 2025-02-13 Dirk Bergemann , Michael C. Wang

In this paper, we solve the multiple product price optimization problem under interval uncertainties of the price sensitivity parameters in the demand function. The objective of the price optimization problem is to maximize the overall…

Optimization and Control · Mathematics 2021-07-01 Mahdi Hamzeei , Alvin Lim , Jiefeng Xu

In sales and marketing, customer segmentation is an important tool for formulating strategies for customer treatment and supply chain management. Most segmentation implementations rely on limited criteria, such as recency, frequency, and…

Machine Learning · Computer Science 2026-05-19 Muhammad Raees , Konstantinos Papangelis , Vassilis Javed Khan

Advanced metering infrastructure (AMI) enables utilities to obtain granular energy consumption data, which offers a unique opportunity to design customer segmentation strategies based on their impact on various operational metrics in…

Applications · Statistics 2020-03-13 Yuxuan Yuan , Kaveh Dehghanpour , Fankun Bu , Zhaoyu Wang

The large scale deployment of Advanced Metering Infrastructure among residential energy customers has served as a boon for energy systems research relying on granular consumption data. Residential Demand Response aims to utilize the…

Systems and Control · Computer Science 2016-07-05 Datong Zhou , Maximilian Balandat , Claire Tomlin

Price responsiveness is a major feature of end use customers (EUCs) that participate in demand response (DR) programs, and has been conventionally modeled with static demand functions, which take the electricity price as the input and the…

Machine Learning · Computer Science 2020-06-09 Hanchen Xu , Hongbo Sun , Daniel Nikovski , Kitamura Shoichi , Kazuyuki Mori

This paper presents a new dynamic pricing model (a.k.a. real-time pricing) that reflects startup costs of generators. Dynamic pricing, which is a method to control demand by pricing electricity at hourly (or more often) intervals, has been…

Optimization and Control · Mathematics 2014-03-06 Naoki Ito , Akiko Takeda , Toru Namerikawa

Mobile data demand is increasing tremendously in wireless social networks, and thus an efficient pricing scheme for social-enabled services is urgently needed. Though static pricing is dominant in the actual data market, price intuitively…

Computer Science and Game Theory · Computer Science 2018-08-14 Zehui Xiong , Dusit Niyato , Ping Wang , Zhu Han , Yang Zhang

The emerging interest in deployment of renewable energy resources (RESs) in smart system represents a great challenge to both system planners and owners of Microgrids (MGs) operators. In this regard, we propose a Tri-level power market…

Optimization and Control · Mathematics 2018-02-13 Mohammd Hamdi

We consider dynamic pricing algorithms as applied to the online set cover problem. In the dynamic pricing framework, we assume the standard client server model with the additional constraint that the server can only place prices over the…

Data Structures and Algorithms · Computer Science 2024-09-24 Max Bender , Aum Desai , Jialin He , Oliver Thompson , Pramithas Upreti

Load shapes derived from smart meter data are frequently employed to analyze daily energy consumption patterns, particularly in the context of applications like Demand Response (DR). Nevertheless, one of the most important challenges to…

This paper proposes a two-step framework for techno-economic analysis of a demand-side flexibility service in distribution networks. Step one applies optimization-based modelling to propose a generic problem formulation which determines the…

Systems and Control · Electrical Eng. & Systems 2022-01-10 Timur Sayfutdinov , Charalampos Patsios , David Greenwood , Meltem Peker , Ilias Sarantakos

This paper presents a marketing analytics framework that operationalizes subscription pricing as a dynamic, guardrailed decision system, uniting multivariate demand forecasting, segment-level price elasticity, and churn propensity to…

Machine Learning · Computer Science 2026-01-22 Deepit Sapru

Flexibility in electric power consumption can be leveraged by Demand Response (DR) programs. The goal of this paper is to systematically capture the inherent aggregate flexibility of a population of appliances. We do so by clustering…

Systems and Control · Computer Science 2016-11-17 Mahnoosh Alizadeh , Anna Scaglione , Andrea Goldsmith , George Kesidis

We consider a dynamic pricing problem in network revenue management where customer behavior is predicted by a choice model, i.e., the multinomial logit (MNL) model. The problem, even in the static setting (i.e., customer demand remains…

Optimization and Control · Mathematics 2025-01-06 Qian Shao , Tien Mai , Shih-Fen Cheng

This paper studies the estimation of ranked-list discrete choice models with single and multiple purchases. In this setting, each consumer type is characterized by a ranking over a subset of products and a desired number of purchases, and…

Data Structures and Algorithms · Computer Science 2026-05-11 Luciano Costa , Gerardo Berbeglia , Claudio Contardo , Jean-François Cordeau

This paper contributes to the literature on parametric demand estimation by using deep learning to model consumer preferences. Traditional econometric methods often struggle with limited within-product price variation, a challenge addressed…

General Economics · Economics 2024-12-16 Kirill Safonov

Demand Response (DR) schemes are effective tools to maintain a dynamic balance in energy markets with higher integration of fluctuating renewable energy sources. DR schemes can be used to harness residential devices' flexibility and to…

Computers and Society · Computer Science 2018-05-16 Davide Frazzetto , Bijay Neupane , Torben Bach Pedersen , Thomas Dyhre Nielsen

We study a problem of an online retailer who observes the unit sales of a product, and dynamically changes the retail price, in order to maximize the expected revenue. Assuming the demand of the product is price sensitive, we are interested…

Systems and Control · Electrical Eng. & Systems 2021-06-17 Chengcheng Liu , Mátyás A. Sustik