Title: A game theory approach towards real-time pricing in future electricity markets

Authors: Eleni Kanellou; Orestis Mastakas; Dimitrios Askounis

Addresses: Decision Support Systems Laboratory, School of Electrical and Computer Engineering, National Technical University of Athens, Iroon Politechniou 9, 15780, Athens, Greece ' Decision Support Systems Laboratory, School of Electrical and Computer Engineering, National Technical University of Athens, Iroon Politechniou 9, 15780, Athens, Greece ' Decision Support Systems Laboratory, School of Electrical and Computer Engineering, National Technical University of Athens, Iroon Politechniou 9, 15780, Athens, Greece

Abstract: Pricing can be challenging when it comes to energy, as energy pricing models need to consider various different parameters, interactions and decisions. This study aims at introducing a real-time pricing algorithm which attempts to model the interaction between companies and customers as a Stackelberg game, the competition among companies as a non-cooperative game, while the decision-making process of the customers is represented by an evolutionary process. The customer's knowledge of the company production capacities and the companies' knowledge of the customer utility functions are the key assumptions of the algorithm. For the purpose of this research, customers are also assumed to have the right to choose any company that they desire in an hourly basis.

Keywords: pricing model; Stackelberg game; non-cooperative game; evolutionary process.

DOI: 10.1504/IJDSS.2021.113777

International Journal of Decision Support Systems, 2021 Vol.4 No.3, pp.217 - 234

Received: 10 Jun 2020
Accepted: 11 Jun 2020
Published online: 22 Mar 2021 *