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A minimal model of a market of myopic non-cooperative agents who trade bilaterally with random bids reproduces qualitative features of short-term electric power markets, such as those in California and New England. Each agent knows its own…

Trading and Market Microstructure · Quantitative Finance 2009-05-15 Randall A. LaViolette , Lory A. Ellebracht , Kevin L. Stamber , Charles J. Gieseler , Benjamin K. Cook

In this paper, we propose a novel incentive based Demand Response (DR) program with a self reported baseline mechanism. The System Operator (SO) managing the DR program recruits consumers or aggregators of DR resources. The recruited…

Systems and Control · Electrical Eng. & Systems 2024-12-20 Deepan Muthirayan , Enrique Baeyens , Pratyush Chakraborty , Kameshwar Poolla , Pramod P. Khargonekar

If you recommend a product to me and I buy it, how much should you be paid by the seller? And if your sole interest is to maximize the amount paid to you by the seller for a sequence of recommendations, how should you recommend optimally if…

Computer Science and Game Theory · Computer Science 2009-11-10 Paul Dütting , Monika Henzinger , Ingmar Weber

In Demand Response programs, price incentives might not be sufficient to modify residential consumers load profile. Here, we consider that each consumer has a preferred profile and a discomfort cost when deviating from it. Consumers can…

Optimization and Control · Mathematics 2017-12-01 Paulin Jacquot , Olivier Beaude , Nadia Oudjane , Stephane Gaubert

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 a Bayesian persuasion game where a sender wants to persuade a receiver to take a binary action, such as purchasing a product. The sender is informed about the (real-valued) state of the world, such as the quality of the product,…

Computer Science and Game Theory · Computer Science 2025-02-13 Keegan Harris , Nicole Immorlica , Brendan Lucier , Aleksandrs Slivkins

This paper considers the reliability problem in energy-only markets. Following widespread blackouts in 2011, Texas introduced a reliability price incentive to attract two GW of net additional natural gas-generating capacity. The incentive…

General Economics · Economics 2024-06-25 Devin Mounts , Robin M. Cross

Optimization models have been broadly used within side the energy industry as useful decision-making systems for scheduling and dispatching electric powered energy resources; this is applied in a system called unit commitment (UC). Unit…

Optimization and Control · Mathematics 2022-04-01 Angel Zambrano

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

According to the fundamental theorems of welfare economics, any competitive equilibrium is Pareto efficient. Unfortunately, competitive equilibrium prices only exist under strong assumptions such as perfectly divisible goods and convex…

Computer Science and Game Theory · Computer Science 2023-05-24 Mete Şeref Ahunbay , Martin Bichler , Johannes Knörr

This paper studies real-time bidding mechanisms for economic dispatch and frequency regulation in electrical power networks. We consider a market administered by an independent system operator (ISO) where a group of strategic generators…

Optimization and Control · Mathematics 2018-01-03 Tjerk Stegink , Ashish Cherukuri , Claudio De Persis , Arjan van der Schaft , Jorge Cortés

Recent literature highlights the advantages of implementing social rules via dynamic game forms. We characterize when truth-telling remains a dominant strategy in gradual mechanisms implementing strategy-proof social rules, where agents…

Theoretical Economics · Economics 2025-03-27 Wenqian Wang , Zhiwen Zheng

Modern society critically depends on the services electric power provides. Power systems rely on a network of power lines and transformers to deliver power from sources of power (generators) to the consumers (loads). However, when power…

Systems and Control · Computer Science 2015-07-21 Karsten Lehmann , Russell Bent , Feng Pan

In this study, we develop a theoretical model of strategic equilibrium bidding and price-setting behaviour by heterogeneous and boundedly rational electricity producers and a grid operator in a single electricity market under uncertain…

Physics and Society · Physics 2017-04-27 Jobst Heitzig , Hildegard Meyer-Ortmanns , Sabine Auer

In this paper, we propose a pricing mechanism for the uplink communication cooperation to save the energy of mobile terminals (MTs) in wireless cellular network. Under the uncertainties of the other MTs' channel and battery conditions, a…

Information Theory · Computer Science 2015-08-05 Yinghao Guo , Lingjie Duan , Rui Zhang

The purpose of this paper is to study conflicting objectives between the grid operator and consumers in a future smart grid. Traditionally, customers in electricity grids have different demand profiles and it is generally assumed that the…

Optimization and Control · Mathematics 2012-12-11 Naveed Ul Hassan , Xiumin Wang , Shisheng Huang , Chau Yuen

While the field of electricity price forecasting has benefited from plenty of contributions in the last two decades, it arguably lacks a rigorous approach to evaluating new predictive algorithms. The latter are often compared using unique,…

Applications · Statistics 2022-04-07 Jesus Lago , Grzegorz Marcjasz , Bart De Schutter , Rafał Weron

The participation of consumers and producers in demand response programs has increased in smart grids, which reduces investment and operation costs of power systems. Also, with the advent of renewable energy sources, the electricity market…

Machine Learning · Computer Science 2022-07-29 Nafise Rezaei , Roozbeh Rajabi , Abouzar Estebsari

Internet-of-things (IoT) is gaining popularity in recent times. Cellular network can be an appropriate solution for the IoT connectivity. With the exponential increase in the number of connected IoT devices, energy consumption is a…

Networking and Internet Architecture · Computer Science 2019-04-30 Syed Waqas Haider Shah , Ahmad Talal Riaz , Zahoor Fatima

Consider a large-scale cellular network in which base stations (BSs) serve massive Internet-of-Things (IoT) devices. Since IoT devices are powered by a capacity-limited battery, how to prolong their working lifetime is a paramount problem…

Signal Processing · Electrical Eng. & Systems 2019-09-11 Chun-Hung Liu , Yu-Han Shen , Chia-Han Lee