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We propose a mean field game (MFG) framework to model the evolution of renewable energy production in competitive electricity markets. Producers interact through the spot price while optimising their profits under production, installation,…

Optimization and Control · Mathematics 2026-03-25 Luciano Campi , Zhuoshu Wu

Weather, technological and regulatory uncertainties expose actors in highly renewable electricity markets to substantial price and volume risks. Two-way Contracts for Difference (CfDs) can mitigate these risks. They stipulate payments…

General Economics · Economics 2025-12-22 Silke Johanndeiter , Jonas Finke , Justus Heuer

In this work, a novel Stackelberg game theoretic framework is proposed for trading energy bidirectionally between the demand-response (DR) aggregator and the prosumers. This formulation allows for flexible energy arbitrage and additional…

Machine Learning · Computer Science 2024-10-28 Styliani I. Kampezidou , Justin Romberg , Kyriakos G. Vamvoudakis , Dimitri N. Mavris

We consider an energy system with $n$ consumers who are linked by a Demand Side Management (DSM) contract, i.e. they agreed to diminish, at random times, their aggregated power consumption by a predefined volume during a predefined…

Optimization and Control · Mathematics 2021-01-18 Clémence Alasseur , Luciano Campi , Roxana Dumitrescu , Jia Zeng

A multi-player competitive Dynkin stopping game is constructed. Each player can either exit the game for a fixed payoff, determined a priori, or stay and receive an adjusted payoff depending on the decision of other players. The single…

Computer Science and Game Theory · Computer Science 2012-11-20 Ivan Guo

Contracts for Difference (CfDs) are forwards on the spread between an area price and the system price. Together with the system price forwards, these products are used to hedge the area price risk in the Nordic electricity market. The CfDs…

Applications · Statistics 2014-06-27 Egil Ferkingstad , Anders Løland

This paper studies a nonzero-sum Dynkin game in discrete time under non-exponential discounting. For both players, there are two levels of game-theoretic reasoning intertwined. First, each player looks for an intra-personal equilibrium…

Optimization and Control · Mathematics 2022-05-09 Yu-Jui Huang , Zhou Zhou

We study the solution's existence for a generalized Dynkin game of switching type which is shown to be the natural representation for general defaultable OTC contract with contingent CSA. This is a theoretical counterparty risk mitigation…

Mathematical Finance · Quantitative Finance 2015-01-12 Giovanni Mottola

In the modern power market, electricity trading is an extremely competitive industry. More accurate price forecast is crucial to help electricity producers and traders make better decisions. In this paper, a novel method of convolutional…

Signal Processing · Electrical Eng. & Systems 2020-03-17 Hsu-Yung Cheng , Ping-Huan Kuo , Yamin Shen , Chiou-Jye Huang

This paper studies a 2-players zero-sum Dynkin game arising from pricing an option on an asset whose rate of return is unknown to both players. Using filtering techniques we first reduce the problem to a zero-sum Dynkin game on a…

Probability · Mathematics 2019-05-20 Tiziano De Angelis , Fabien Gensbittel , Stéphane Villeneuve

This paper investigates the feasibility of using a discriminate pricing scheme to offset the inconvenience that is experienced by an energy user (EU) in trading its energy with an energy controller in smart grid. The main objective is to…

Systems and Control · Computer Science 2014-07-23 Wayes Tushar , Chau Yuen , Bo Chai , David B. Smith , H. Vincent Poor

This paper studies the valuation and optimal strategy of convertible bonds as a Dynkin game by using the reflected backward stochastic differential equation method and the variational inequality method. We first reduce such a Dynkin game to…

Mathematical Finance · Quantitative Finance 2015-04-01 Huiwen Yan , Zhou Yang , Fahuai Yi , Gechun Liang

In this paper, we introduce a game theoretic framework for studying the problem of minimizing the delay of instantly decodable network coding (IDNC) for cooperative data exchange (CDE) in decentralized wireless network. In this…

Information Theory · Computer Science 2014-04-15 Ahmed Douik , Sameh Sorour , Hamidou Tembine , Tareq Y. Al-Naffouri , Mohamed-Slim Alouini

In this paper we study the nonzero-sum Dynkin game in continuous time which is a two player non-cooperative game on stopping times. We show that it has a Nash equilibrium point for general stochastic processes. As an application, we…

Pricing of Securities · Quantitative Finance 2008-12-10 Said Hamadene , Jianfeng Zhang

This paper uses recent results on continuous-time finite-horizon optimal switching problems with negative switching costs to prove the existence of a saddle point in an optimal stopping (Dynkin) game. Sufficient conditions for the game's…

Optimization and Control · Mathematics 2018-06-05 Randall Martyr

A Dynkin game is a zero-sum, stochastic stopping game between two players where either player can stop the game at any time for an observable payoff. Typically the payoff process of the max-player is assumed to be smaller than the payoff…

Probability · Mathematics 2020-08-18 Ivan Guo

We consider Dynkin games for Markov processes associated with semi-Dirichlet forms. Dynkin games are the optimal stopping games introduced as the models of zero-sum games by two players. We prove that the solution to the certain variational…

Probability · Mathematics 2023-04-26 Takumu Ooi , Toshihiro Uemura

We study optimal behavior of energy producers under a CO_2 emission abatement program. We focus on a two-player discrete-time model where each producer is sequentially optimizing her emission and production schedules. The game-theoretic…

Optimization and Control · Mathematics 2010-08-24 Michael Ludkovski

Automated design of multi-agent interactions with desirable equilibrium outcomes is inherently difficult due to the computational hardness, non-uniqueness, and instability of the resulting equilibria. In this work, we propose the use of…

Computer Science and Game Theory · Computer Science 2026-03-13 Vinzenz Thoma , Georgios Piliouras , Luke Marris

We study pricing and superhedging strategies for game options in an imperfect market with default. We extend the results obtained by Kifer in \cite{Kifer} in the case of a perfect market model to the case of an imperfect market with…

Mathematical Finance · Quantitative Finance 2017-07-04 Roxana Dumitrescu , Marie-Claire Quenez , Agnès Sulem
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