Approximately Stable Pricing for Coordinated Purchasing of Electricity

Perrault, Andrew; Boutilier, Craig

Approximately Stable Pricing for Coordinated Purchasing of Electricity

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Proceedings of the Twenty-Fourth International Joint Conference on Artificial Intelligence. Special Track on Computational Sustainability. Pages 2624-2630.

Abstract

Matching markets are often used in exchange settings (e.g., supply chain) to increase economic efficiency while respecting certain global constraints on outcomes. We investigate their application to pricing and cost sharing in group purchasing of electricity in smart grid settings. The task is complicated by the complexities of producer cost functions due to constraints on generation from different sources (they are sufficiently complex that welfare-optimal matchings are not usually in equilibrium). We develop two novel cost sharing schemes: one based on Shapley values that is fair, but computationally intensive; and one that captures many of the essential properties of Shapley pricing, but scales to large numbers of consumers. Empirical results show these schemes achieve a high degree of stability in practice and can be made more stable by sacrificing small amounts (< 2%) of social welfare.

Andrew Perrault, and Craig Boutilier. 2015. Approximately Stable Pricing for Coordinated Purchasing of Electricity. In Proceedings of the Twenty-Fourth International Joint Conference on Artificial Intelligence, IJCAI-15. IJCAI, 2624–2630. https://ijcai.org/proceedings/2015/372

@inproceedings{ijcai2015p372,
  title     = {Approximately Stable Pricing for Coordinated Purchasing of Electricity},
  author    = {Perrault, Andrew and Boutilier, Craig},
  booktitle = {Proceedings of the Twenty-Fourth International Joint Conference on
               Artificial Intelligence, {IJCAI-15}},
  publisher = {International Joint Conferences on Artificial Intelligence},
  editor    = {Qiang Yang and Michael Wooldridge},
  pages     = {2624--2630},
  year      = {2015},
  month     = {7},
  note      = {Special Track on Computational Sustainability},
  url       = {https://ijcai.org/proceedings/2015/372},
}

TY  - CPAPER
TI  - Approximately Stable Pricing for Coordinated Purchasing of Electricity
AU  - Perrault, Andrew
AU  - Boutilier, Craig
T2  - Proceedings of the Twenty-Fourth International Joint Conference on Artificial Intelligence, IJCAI-15
PB  - International Joint Conferences on Artificial Intelligence
PY  - 2015
SP  - 2624
EP  - 2630
UR  - https://ijcai.org/proceedings/2015/372
ER  -